Well, youa re execotedto mention the acturalsaleproice in the deed and not the cricileprice which is issued by the DLC.

So if the sale deed reflects the actual sale price you have received then on that amount only you can make the LTCG Tax. Except this there is no other way out.

as per section 50 C of income tax act if property is sold for rate below the circle rate then circle rate would be determined to be sale price of property by income tax authorities and capital gains tax levied accordingly to the seller

2) if you claim that fair market value is below the circle rate then in such case I0 would request valuation officer to carry valuation of property

3) the valuation determined by valuation officer would be sale price of the property if valuation determined by valuation officer is lower than circle rate

4) if valuation officer determines sale price to be higher than circle rate than circle rate would be deemed to be sale price of property

5) under section 56(2) vii) in case of buyer the difference between sale price and circle rate would be determined to be the income of purchaser and taxed under head income from other sources

1. The same problem prevails all over the Country where the circle rate is much more than the prevailing rate.

2. The circle rate is fixed at a higher level by the State Government to ensure higher collection of stamp duty.

3. You can file a Writ Petition before the High court against the Registrar for fixing such abnormally high circle rate for which all shall have to pay extra amount towards stamp duty and also income tax with out any valid rerason whatsoever.

The capital gains tax shall be calculated on the basis of sale consideration price only, it may be circle rate or market rate.

The taxes shall be applicable for the amount received by you as per the registered sale deed only and not on any other factor.

The applicable stamp duty shall payable as per the government guideline value only ignoring the prevailing market rates.

Circle rate is taken into consideration only for the purpose of calculating stamp duty on Transfer of Property. You can sell your property below the circle rate but you have to pay stamp duty according to or in proportionate to the circle rate. The sale amount mentioned in sale deed shall be taken into consideration by the Income Tax Department for capital gain tax. If market rate is lower than the circle rate and Income Tax Department considers Circle rate as the actual value of property then you can move an application before the Tribunal for determination of sale amount according to the amount mentioned in sale deed.