Category Capital Gain Taxation

Mode of Computation of Capital Gains in respect of transfer of Immovable property: Section 48 of the Income-tax Act, 1961 provides for mode of computation of capital gains. This is explained in form of illustration as under: Capital Gain Computation Full Value Consideration 9,50,000/- Stamp Duty Valuation 10,00,000/- Sales consideration or Stamp Duty valuation as

Immovable properties i.e. plot of land, residential flats or house, commercial  properties etc. are treated as Capital Assets u/s 2(14) of the Income-tax Act, 1961 (‘the Act’) and accordingly gains arising from the transfer of immovable property is chargeable to income tax. Further, it must be noted that immovable property which is classified as Rural