ITR
Capital gains questioned in scrutiny
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Facts
For capital gains, the officer checks sale value, cost, dates and any exemption claimed. You need purchase and sale proof and evidence for exemption conditions.
Provisions and law
- Sec 48, Income-tax Act 1961 (now Sec 72, Income-tax Act 2025)Capital gain is sale value less cost and transfer expenses.
- Sec 50C, Income-tax Act 1961 (now Sec 78, Income-tax Act 2025)For land and building, stamp duty value can replace a lower sale value.
- Sec 54, Income-tax Act 1961 (now Sec 82, Income-tax Act 2025)Exemption on reinvesting gain from a house in another house.
Analysis
For shares, give the broker capital gains statement and contract notes. For property, give the sale deed, purchase deed, cost of improvement bills and the stamp duty value. If you claimed Sec 54 exemption, give the new house purchase or construction proof and Capital Gains Account Scheme deposit if used. Show the computation in a simple table.
Conclusion
- Prepare a computation table for each asset sold.
- Attach purchase and sale proofs.
- Attach exemption proofs if claimed.
- Explain any difference between sale value and stamp value.
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Scrutiny assessment, Sec 143(2) (now 270(8))
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