How is the sale value determined for computing capital gains?
A. The sale value is not always the actual sale consideration as appearing in the instrument of transfer. In case the value determined by the Stamp Valuation Authority for the purpose of Stamp Duty is higher than the actual disclosed consideration, it is the value determined by Stamp Valuation Authority that is taken for computation of capital gain. The provision is aimed at taking care of the practice of understatement of consideration resulting in tax-evasion. Provision also exists for asking for a reference to the Departmental Value if the seller considers the value determined by Stamp Valuation Authority as excessive.
