How o Calculate Stamp Duty Value in Capital Gain Tax ? – Stamp duty value is the value asses sable by any authority of a State Government for the purpose of payment of stamp duty.
Income Tax section 50C defines that computation of capital gain arises due to transfer of land or building or both, if the actual sale consideration of such land and/or building is less than the stamp duty value, then the stamp duty value will be taken as full value of consideration, i.e., as deemed selling price. The capital gain will be calculated accordingly.
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Example to Calculate :
Mr. Raj sold his land for Rs. 25,00,000. The value adopted by the Stamp Valuation Authority of the bungalow for the purpose of payment of stamp duty is Rs. 20,00,000. In such cases capital gain arising on transfer of land which is the actual sale value of Rs. 25,00,000 will be taken as full value of consideration. Where as the value paid as per the stamp duty value will not be taken into account while computing taxable capital gain.
In simple word the actual registered sale price will be considered for calculation of capital gain.