section 43CA

Double Taxation on Sale of unquoted shares in India

Income Tax - 1. Introduction on Double Taxation on sale of unquoted shares in India (i) Sales consideration of unquoted shares in the hands of transferor (a) Finance Act, 2017 has introduced new section 50CA under the Income Tax Act (ITA) 1961 for adoption of Fair Market Value (FMV) as deemed sales considerations against sale of unquoted shares [&hell...

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Cash Transactions in Agriculture Sector- Income Tax Provisions

Income Tax - In India, a large population is engaged in the agriculture sector and there are numerous transactions regarding sale and purchase of agriculture produce. The farmers sell their agriculture produce to Pacca Arahtia i.e. traders through kuchha Arahtias. Kuchha Arahtias are commission agents and are only fascilators of auctions/sales of agri...

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Restrictions on Cash Transactions in Real Estate under Income Tax

Income Tax - Stakes in transactions in immovable properties are quite high involving huge amount of income tax. It is not only perceived but an open secret in India that sale transactions of immovable properties are undervalued leading to leakage of tax revenue causing losses to the Government and unaccounted money is not good for the health of [&hell...

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TDS on sale of immovable property on higher of Agreement or stamp duty value

Income Tax - In order to remove inconsistency, it is proposed to amend section 194-IA of the Act to provide that in case of transfer of an immovable property (other than agricultural land), TDS is to be deducted at the rate of one per cent. of such sum paid or credited to the resident or the stamp duty value of such property, whichever is higher....

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Transfer of Immovable Property for Less than Stamp Duty Value -Implications

Income Tax - The most essential condition of Sections 43CA ,50C & 56(2)(x) is that the Sale Consideration in whole or part should be received on or before date of registration of agreement only through ECS/RTGS/NEFT/EFT/IMPS/UPI/BHIM or other approved means of money transfer. In this case the Stamp Duty Value at the date of agreement will be allowed t...

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Representation to FM to Widen Scope of Benefit of 20% for flats

Income Tax - Representation for widening the scope of benefit in case of difference in agreement price and Circle Rate of property is upto 20 per cent for the purpose of Income tax. ...

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6 Suggestions for Amendments in Income Tax Act by BCAS

Income Tax - Bombay Chartered Accountants' Society has made a Representation on 'Suggestions for Amendments in the Income Tax Act', on 24th May, 2019, to the Joint Secretary TPL, Central Board of Direct Taxes, Ministry of Finance, Government of India....

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Tolerance margin of 10% u/s 43CA is applicable retrospectively

Sai Bhargavanath Infra Vs ACIT (ITAT Pune) - ITAT Pune held that with regard to first proviso to section 43CA of the Income tax Act effect of the tolerance margin of 10% is to be given retrospective effect i.e. made applicable even for the prior assessment years...

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No addition on basis of application of Sec 43CA in absence of element of transfer

Seema Promoters and Builders Pvt. Ltd Vs DCIT (ITAT Mumbai) - Income tax addition could not be made under section 43CA in absence of element of transfer. When assessee was not an owner of any asset, there couldn’t be any question of transferring the same to someone else whether provisions of sec43CA was complied with or not would be a secondary issue....

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Reopening cannot be proposed on the basis of change of opinion

Lokhandwala Construction Industries Private Limited Vs DCIT (Bombay High Court) - Lokhandwala Construction Industries Private Limited Vs DCIT (Bombay High Court) Once a query is raised during assessment proceedings and assessee has replied to it, it follows that the query raised was a subject matter of consideration of the Assessing Officer while completing the assessment. It is ...

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Section 43CA RW 50C: AO cannot make addition without referring Valuation to DVO

Vijay Arvind Raykar Vs ITO (ITAT Pune) - Vijay Arvind Raykar Vs ITO (ITAT Pune) The assessee is a builder. He is in the business of construction and sale of residential/ commercial properties. The AO observed that certain residential units have been sold by the assessee at a price less than the value adopted for Stamp Duty purpose by the S...

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Section 43CA applies when a registered document is executed

Spytech Buildcon Vs ACIT (ITAT Jaipur) - Spytech Buildcon Vs ACIT (ITAT Jaipur) As per sub-section (3) and (4) of section 43CA, the benefit of prior agreement is granted if the consideration is received at the time of agreement other than cash. In the case in hand, the booking is claimed to have been made prior to 01/04/2013 whereas the sa...

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Income Tax relief for Real-estate Developers and Home Buyers

Release ID: 1672636 - (13/11/2020) - In order to boost demand in the real-estate sector and to enable the real-estate developers to liquidate their unsold inventory at a rate substantially lower than the circle rate and giving benefit to the home buyers, it has been decided to further increase the safe harbour from 10% to 20% under sec...

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CBDT notifies more modes of e-payments; 6DD limit reduced to ₹ 10000

Notification No. 08/2020-Income-Tax [G.S.R. 56(E)] - (29/01/2020) - Notification No. 8/2020-Income-Tax- CBDT has notified Other electronic modes by inserting New Income TAx Rule 6ABBA. It also amended marginal heading of rule 6DD and in rule 6DD for the words ‘account payee bank draft, exceeds twenty thousand rupees’, the words, figures and letters ̵...

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Recent Posts in "section 43CA"

Tolerance margin of 10% u/s 43CA is applicable retrospectively

Sai Bhargavanath Infra Vs ACIT (ITAT Pune)

ITAT Pune held that with regard to first proviso to section 43CA of the Income tax Act effect of the tolerance margin of 10% is to be given retrospective effect i.e. made applicable even for the prior assessment years...

Read More

No addition on basis of application of Sec 43CA in absence of element of transfer

Seema Promoters and Builders Pvt. Ltd Vs DCIT (ITAT Mumbai)

Income tax addition could not be made under section 43CA in absence of element of transfer. When assessee was not an owner of any asset, there couldn’t be any question of transferring the same to someone else whether provisions of sec43CA was complied with or not would be a secondary issue....

Read More

Double Taxation on Sale of unquoted shares in India

1. Introduction on Double Taxation on sale of unquoted shares in India (i) Sales consideration of unquoted shares in the hands of transferor (a) Finance Act, 2017 has introduced new section 50CA under the Income Tax Act (ITA) 1961 for adoption of Fair Market Value (FMV) as deemed sales considerations against sale of unquoted shares [&hell...

Read More
Posted Under: Income Tax |

Cash Transactions in Agriculture Sector- Income Tax Provisions

In India, a large population is engaged in the agriculture sector and there are numerous transactions regarding sale and purchase of agriculture produce. The farmers sell their agriculture produce to Pacca Arahtia i.e. traders through kuchha Arahtias. Kuchha Arahtias are commission agents and are only fascilators of auctions/sales of agri...

Read More
Posted Under: Income Tax | ,

Restrictions on Cash Transactions in Real Estate under Income Tax

Stakes in transactions in immovable properties are quite high involving huge amount of income tax. It is not only perceived but an open secret in India that sale transactions of immovable properties are undervalued leading to leakage of tax revenue causing losses to the Government and unaccounted money is not good for the health of [&hell...

Read More
Posted Under: Income Tax |

Reopening cannot be proposed on the basis of change of opinion

Lokhandwala Construction Industries Private Limited Vs DCIT (Bombay High Court)

Lokhandwala Construction Industries Private Limited Vs DCIT (Bombay High Court) Once a query is raised during assessment proceedings and assessee has replied to it, it follows that the query raised was a subject matter of consideration of the Assessing Officer while completing the assessment. It is not necessary that an assessment order s...

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Section 43CA RW 50C: AO cannot make addition without referring Valuation to DVO

Vijay Arvind Raykar Vs ITO (ITAT Pune)

Vijay Arvind Raykar Vs ITO (ITAT Pune) The assessee is a builder. He is in the business of construction and sale of residential/ commercial properties. The AO observed that certain residential units have been sold by the assessee at a price less than the value adopted for Stamp Duty purpose by the State Government. During […]...

Read More

TDS on sale of immovable property on higher of Agreement or stamp duty value

In order to remove inconsistency, it is proposed to amend section 194-IA of the Act to provide that in case of transfer of an immovable property (other than agricultural land), TDS is to be deducted at the rate of one per cent. of such sum paid or credited to the resident or the stamp duty value of such property, whichever is higher....

Read More
Posted Under: Income Tax |

Transfer of Immovable Property for Less than Stamp Duty Value -Implications

The most essential condition of Sections 43CA ,50C & 56(2)(x) is that the Sale Consideration in whole or part should be received on or before date of registration of agreement only through ECS/RTGS/NEFT/EFT/IMPS/UPI/BHIM or other approved means of money transfer. In this case the Stamp Duty Value at the date of agreement will be allowed t...

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Posted Under: Income Tax |

Stamp Duty Valuation Complimented with Delhi Govt Circle Rate Notification In Force As on Date

Stamp Duty Valuation Complimented with Delhi Govt Circle Rate Notification In Force As on Date 1. Delhi Govt Vide No. F. 1(2854)/Regn.Br./Div.Comm./HQ/2020/5453 dated 26th February 2021; notified revised circle rates for registration of instruments relating to lands and immovable properties in Delhi by all the Registering Authorities unde...

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Posted Under: Income Tax |

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