1031(Income tax ) Is sale value (referred to as consideration value ) same as capital gains ? Video Link - https://youtube/watch?v=cs0LAGCDbVQ Methodology - Harvard case model Narration - By Amlan Dutta Bank managers have called me up and sounded confused forcing me to explain this concept ..lets clear this with a example Whatever money (i.e consideration ) i receive in respect of asset is the sale value (consideration value ) which is actually higher of the sale price and the valuation done by the stamp valuation authority However , this cannot be my gains ...obviously gains are measured against the cost ...so whatever the cost is in terms of acquisition( indexed ) , improvement( indexed) , cost incurred in brokerage ,license fee etc have to be all taken into account Say i had bought it in 2009 for 25 Rs , however thsi 25 Rs when factopred for indexation in year of sale is 150 rs ...say i paid brokerage and license fee 50 Rs ...so total cost is 200 Rs ( This are all covered neatly under deductions under section 48 ) Say i sell this flat for 300 Rs ....now the consideration value is 300 Rs , however the gains taking into account all costs is just 100 Rs ... Tax is applied on this capital gains and not on the consideration value ! If you learnt something from it , please share your knowledge with people around you ! Please donr subscribe to my Youtube channel or like my facebook page ,just be a good human being and help people , Peace , Amlan Dutta
Posted on: Wed, 29 Oct 2014 16:12:05 +0000
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