Sir the capital gain shall be levied.on the circle rates if sold below the circle rates under the income tax act.

So tax liability shall be on 12 lakh.

No tax liability as you have no gain in the property.

Circle rates are for the calculation of stamp duty payment.

I think you are wise enough and very quick in rating.

My dear friend a property can be sold on the market value which may be less than the circle rate to avoid the loss of revenue by the government stamp duty is paid under Circle rate as you are not getting any profit out of your sale then the long term capital gain do not arise.

This is what I wanted to communicate you if you don't know the answer at least avoid ratings like terrible

Thanks for your effort

Tax is not to be paid on the total selling price of the property.

Tax is paid on the capital gain which is (selling price of the property-cost at which you bought the property). The cost is also subject to indexation.

For example you bought the property for 10 lacs in 2000. Now the present value of that 10 lacs will be 15lacs. So if you sell the property for 20 lacs your tax would be on 5lacs rather on 10.

If however you bought the property within the last 3 years then no indexation will be done.

what is amount mentioned in sale deed ?

2) when did you purchase the plot?

3) when did you sell it ?

4) kindly clarify

Please provide more details like date of purchase and sale

Income tax liability on sale and purchase of

Assets(property) is described as STCG & LTCG

If u hold property more then a year you are liable to pay LTCG(long term capital gain) and if property holded for less then a year STCG is applicable

Tax liability is calculated on the basis of inflation index if property holded more then 3 years

In your case you have no capital gains so tax liability is nill.

You will have zero liability towards income tax.

Please check your purchase price and selling price in the question.

selling prices 6 lacs

minus purchase price 6 lacs

No Profit no loss = Zero amount.

Income Tax is for individual purpose of Income and what you are mentioning Collector value its for government purpose of revenue from stamp duty registration of buying and selling of the plot. both are the different laws don't mix up or club with your income.

plz check section 50C of income tax act

it says that if a property is sold below the guideline value then the differential is deemed to have exchanged between the parties in cash which will be added to your income and taxed

also you many also get a notice from collector office for under valuing the property for evading stamp duty

Until you dont have long or short term capital gains you need not pay income tax on selling this immovable property.