We have recently sold a property. However, due to multiple buyers and sellers, multiple registries were done, and the total amount credited is a bit more than the sale value on all registries. What can we do in such case? How to account for the difference in ITR? Note: The amount credited is the one agreed upon but sale value mentioned in registry is less
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You have to declare actual sale consideration received by you in your income tax returns
For instance actual sale consideration received is Rs 30 lakhs but amount mentioned in sale deed is Rs 20 lakhs you should declare actual amount received in your income tax returns
If there is an excess amount collected towards the sale consideration amount from the sale of the immovable property, then you may show it as an income from other sources.
The sources may be different hence it is not necessary that you have disclose the actual source only in the ITR.
Thank you Sir for confirming. We are okay with declaring actual amount in capital gain. However, since, we do not have any document supporting the actual sale value except the bank transaction amount credited, can the difference be taxed at slab rate (30%) as income from other source?
Section 56(2)(X)(b). According to the said section if the stamp duty value exceeds the purchase consideration by more than Rs.50,000 then, the difference between the Stamp Duty Value and the Purchase Consideration will be treated as Income u/h Other Sources. It also provide that where the assessee receives any immovable property for a consideration and the stamp duty value of such property exceeds ten per cent of the consideration or fifty thousand rupees, whichever is higher, the stamp duty value of such property as exceeds such consideration shall be charged to tax under the head “Income from other sources”.
Income Tax under the head Capital Gain is taxable on the amount you declare and on the amount TDS is deducted. You should mention the actual sale amount because the difference in amount will make Income Tax Dept send you the notice asking for the same.
The extra amount can be said to have earned from another source, for that you need to have the receipts. Supposedly who can show that items of furniture were sold in the extra amount received.
- Section 139(5) of the Income-Tax Act allows taxpayers to rectify their mistake by filing a revised income tax return
- The process of filing a revised ITR is the same as filing an original one , but it should file it under section 139(5) of the Income-tax Act , and there is already an option ' Revised u/s 139(5)' in the 'return filed under' column.
- Bank transaction where the amount has credited is the proof of capital fund .
Dear Sir/Ma'am,
1. You can account for the difference as capital gain in the ITR. If the difference amount is in cash, then the slab rate would be taxed at 30%, but if the transaction has been made via cheque, online payment, etc., we can rectify the ITR and submit these documents as evidence.
Thank you.
