Selling property below market value can lead to litigation: How to avoid it

If you want to claim tax benefit by investing in a new house, use the market value to avoid litigation

housing loan
To save tax, you can buy, or start constructing a house, one year before selling the long-term asset

When a property owner sells his house below market value, should he use the sale price or the market price when taking income tax benefit? With real estate prices in many markets across the country seeing a correction, cases, where the property is sold below market value, are on the rise. The taxpayer would want to use the sale price for computations. Tax officers, however, insist on considering the market value.  Contention arises in two situations. One is when a taxpayer sells a house below market value and invests in a new one to claim benefit under Section 54 of the ...