section 43CA

Transfer of Immovable Properties on Sale Consideration Less Than Stamp Duty Valuation

Income Tax - As a general public we have tendency to save taxes by adopting various tricks and transactions. A lot of black money is generated through transfer of various types of immovable properties. The seller and the purchaser generally mutually agree on a transaction to enter into agreement at a price lower than the Fair Market Value of property ...

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Buying or Selling Property below the Stamp Duty Value

Income Tax - In India buying or selling of properties (Land & Building) at a value lower than the stamp duty value is very much prevalent to save the Stamp Duty on registration, which causes loss of revenue to the Government. Loss is not of just Stamp Duty revenue but also of Income Tax revenue that is to be paid by assessee on Income under head Capit...

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Real Estate Developers and Section 43CA

Income Tax - The provision was introduced in order to counter act the various decisions of high courts where it was held that provisions of Section 50C is not applicable when the seller holds the land or building or both as a capital asset. However , there are certain practical issues difficulties that arose due to the section....

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Taxability of Transactions in Real Estate Sector

Income Tax - Taxation whether direct or indirect in real estate sector always been a very critical issue due to different nature of this sector. In the recent past, there has been made lots of various provisions in the different tax laws to bring various activities, income, charges or fee etc. under tax regime....

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Tax on Sale Of Immovable Properties Vis-A-Vis Deemed Valuation U/s. 50C

Income Tax - (A) Concept of Stamp Duty Value- It should be noted that the Stamp Duty Basis Valuation is applicable only in the transactions pertaining to Immoveable Property in the Income Tax Act 1961. It is similar to the concept of Fair Market Value (FMV)....

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Addition U/s. 50C for mere variance with Stamp Duty Valuation without investigation not justified

Inderlok Hotels Pvt. Ltd. Vs Income Tax Officer (ITAT Mumbai) - No addition can be sustained in this case, as, neither there is any investigation whatsoever made by the Assessing Officer nor was any evidence gathered by him. Merely because the market value as per the stamp valuation authorities and the sale price are at variance, no addition can be made to the b...

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Section 50C not applicable in case the property held as business asset

Commissioner Of Income Tax Vs. Thiruvengadam Investments P. Limited. (Madras High Court) - It is not in dispute that the activity of the assessee is of property promoter. As the property in the hands of the assessee was treated as business asset and not as capital asset, there is no question of invoking the provisions of section 50C of the Act. Section 50C of the Act pertains to determini...

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Recent Posts in "section 43CA"

Transfer of Immovable Properties on Sale Consideration Less Than Stamp Duty Valuation

As a general public we have tendency to save taxes by adopting various tricks and transactions. A lot of black money is generated through transfer of various types of immovable properties. The seller and the purchaser generally mutually agree on a transaction to enter into agreement at a price lower than the Fair Market Value of property ...

Read More
Posted Under: Income Tax |

Buying or Selling Property below the Stamp Duty Value

In India buying or selling of properties (Land & Building) at a value lower than the stamp duty value is very much prevalent to save the Stamp Duty on registration, which causes loss of revenue to the Government. Loss is not of just Stamp Duty revenue but also of Income Tax revenue that is to be paid by assessee on Income under head Capit...

Read More
Posted Under: Income Tax |

Real Estate Developers and Section 43CA

The provision was introduced in order to counter act the various decisions of high courts where it was held that provisions of Section 50C is not applicable when the seller holds the land or building or both as a capital asset. However , there are certain practical issues difficulties that arose due to the section....

Read More
Posted Under: Income Tax |

Taxability of Transactions in Real Estate Sector

Taxation whether direct or indirect in real estate sector always been a very critical issue due to different nature of this sector. In the recent past, there has been made lots of various provisions in the different tax laws to bring various activities, income, charges or fee etc. under tax regime....

Read More
Posted Under: Income Tax |

Tax on Sale Of Immovable Properties Vis-A-Vis Deemed Valuation U/s. 50C

(A) Concept of Stamp Duty Value- It should be noted that the Stamp Duty Basis Valuation is applicable only in the transactions pertaining to Immoveable Property in the Income Tax Act 1961. It is similar to the concept of Fair Market Value (FMV)....

Read More
Posted Under: Income Tax |

Addition U/s. 50C for mere variance with Stamp Duty Valuation without investigation not justified

Inderlok Hotels Pvt. Ltd. Vs Income Tax Officer (ITAT Mumbai)

No addition can be sustained in this case, as, neither there is any investigation whatsoever made by the Assessing Officer nor was any evidence gathered by him. Merely because the market value as per the stamp valuation authorities and the sale price are at variance, no addition can be made to the business income....

Read More

Budget – Stamp Duty Rate Valuation applies to Builders in certain cases

It is proposed to provide by inserting a new section 43CA that where the consideration for the transfer of an asset (other than capital asset), being land or building or both, is less than the stamp duty value, the value so adopted or assessed or assessable shall be deemed to be the full value of the consideration for the purposes of comp...

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Posted Under: Income Tax | ,

Section 50C not applicable in case the property held as business asset

Commissioner Of Income Tax Vs. Thiruvengadam Investments P. Limited. (Madras High Court)

It is not in dispute that the activity of the assessee is of property promoter. As the property in the hands of the assessee was treated as business asset and not as capital asset, there is no question of invoking the provisions of section 50C of the Act. Section 50C of the Act pertains to determining the full value of the capital asset. ...

Read More

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