Tax Implication on Sale & Purchase of Immovable Property for Seller & Buyer The sale or purchase transaction of immovable property carries specific tax implications. Immovable property means land or buildings or both. Land or building or both can be categorized as either capital assets or stock-in-trade. The sale of property is subject to both income tax and stamp duty. In this process, both buyers and sellers, as well as the registrar, bear certain obligations. The determination of the full value of consideration for calculating capital gains in the hands of the seller is stipulated by Section 50C. This comes into play when the actual sale consideration is lower than the stamp duty value. Section 56(2)(x)(b) outlines the taxability of such transactions in the hands of the buyer, and Section 194-IA places the responsibility on the buyer to deduct tax at source when the value of property exceeds specified threshold. Read more at: https://lnkd.in/dYZusAkK #Tax #Implication #Sale #Purchase #Immovable #Property #Seller #Buyer
