section 43CA

Taxation of development agreement in parity with stamp duty valuation

Income Tax - Taxation of development agreement is most complex issue in recent times because nowdays stamp duty valuations of the development agreements are based on maximum potential FSI. The structure of the development agreement and consideration involves two flows of consideration. One flow is from devoloper to landowner in form of consideration i...

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Request to FM to extend applicability of safe harbour limit u/s 43CA & 56(2)(x)

Income Tax - Open Letter to FM- Request to extend applicability of safe harbour limit u/s 43CA & 56(2)(x) of the Income Tax Act from 30th June 2021 to 31 March 2022 The worthy Finance Minister on 12th November, 2020 had announced relief to the real estate developers and the home buyers by increasing the safe harbour limit u/s […]...

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Finance Act-2021-Amendments in Business or Profession Taxation

Income Tax - Finance Act-2021-Amendments in Business or Profession related Sections of Income Tax Act, 1961 i.e.  Section 32(1)-Depreciation of buildings, machinery, plant or furniture, Section 43CA-Special Provisions For Full Value Of Consideration For Transfer of Assets Other Than Capital Assets In Certain Cases, Section 44AB- Tax Audit and Section...

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Section 50C of Income Tax Act, 1961

Income Tax - 1. Determination of full value of consideration Sub section (1) of the section 50C provides that where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value of adopted or assessed or assessable by any authority […]...

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Section 43CA – Stamp Duty Value- Safer Harbour limit increased to 20%

Income Tax - Increase in safe harbour limit of 10% for home buyers and real estate developers selling such residential units under Union Budget 2021 to 20% for certain transfer during the period from 12th November, 2020 to 30th June, 2021 Section 43CA of the Act, inter alia, provides that where the consideration declared to be received or […]...

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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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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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Sec. 43CA was not applicable if transfer was only rights in under-construction flats instead of property per se

Shree Laxmi Estate Pvt.Ltd. Vs ITO (ITAT Mumbai) - Shree Laxmi Estate Pvt.Ltd. Vs ITO (ITAT Mumbai) Conclusion: Since assessee had transferred pursuant to registration of the agreement was only the rights in the flat/ office (which was under construction) and not the property per se hence, there was no transfer of any land or building or both by the...

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Section 50C does not Apply to Land treated as Stock-in-Trade

Amar Das Vs ITO (ITAT Kolkata) - Amar Das Vs ITO (ITAT Kolkata) Admittedly the provisions of section 50C are applicable only for capital assets and not for assets held as stock-in-trade. We find that the legislature in its wisdom had introduced a separate provision to adopt the stamp value in respect of assets other than capital as...

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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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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"

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 sale deeds […]...

Read More

Taxation of development agreement in parity with stamp duty valuation

Taxation of development agreement is most complex issue in recent times because nowdays stamp duty valuations of the development agreements are based on maximum potential FSI. The structure of the development agreement and consideration involves two flows of consideration. One flow is from devoloper to landowner in form of consideration i...

Read More
Posted Under: Income Tax |

Request to FM to extend applicability of safe harbour limit u/s 43CA & 56(2)(x)

Open Letter to FM- Request to extend applicability of safe harbour limit u/s 43CA & 56(2)(x) of the Income Tax Act from 30th June 2021 to 31 March 2022 The worthy Finance Minister on 12th November, 2020 had announced relief to the real estate developers and the home buyers by increasing the safe harbour limit u/s […]...

Read More
Posted Under: Income Tax |

Finance Act-2021-Amendments in Business or Profession Taxation

Finance Act-2021-Amendments in Business or Profession related Sections of Income Tax Act, 1961 i.e.  Section 32(1)-Depreciation of buildings, machinery, plant or furniture, Section 43CA-Special Provisions For Full Value Of Consideration For Transfer of Assets Other Than Capital Assets In Certain Cases, Section 44AB- Tax Audit and Section...

Read More
Posted Under: Income Tax |

Section 50C of Income Tax Act, 1961

1. Determination of full value of consideration Sub section (1) of the section 50C provides that where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value of adopted or assessed or assessable by any authority […]...

Read More
Posted Under: Income Tax |

Section 43CA – Stamp Duty Value- Safer Harbour limit increased to 20%

Increase in safe harbour limit of 10% for home buyers and real estate developers selling such residential units under Union Budget 2021 to 20% for certain transfer during the period from 12th November, 2020 to 30th June, 2021 Section 43CA of the Act, inter alia, provides that where the consideration declared to be received or […]...

Read More
Posted Under: Income Tax |

Analysis of Section 43CA of Income Tax Act, 1961

Special Provisions For Full Value Of Consideration For Transfer Of Assets Other Than Capital Assets In Certain Cases [Section 43CA]  Section 43CA inserted by the Finance Act, 2013, with effect from 01.04.2014 (i.e. with effect from A.Y. 2014-15) which provides that where the consideration received or accruing as a result of the transfer ...

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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 Arahtias i.e. traders through kachha Arahtias. Kachha arahtia are commission agents and are only facilitators of auctions/sales of agr...

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Posted Under: Income Tax |

Restrictions on Cash Transactions in Real Estate under Income Tax

Restrictions on Cash Transactions in Real Estate under Income Tax, 1961 (Section 50C, section 43CA and section 56(2)(x)) ♦ Stakes in transactions in immovable properties are quite high and so are the tax implications. It is not only perceived but an open secret in India that sale transactions of immovable properties are undervalued lead...

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Posted Under: Income Tax |

Income Tax Relief for home buyers & Real Estate Developers

In a recent press conference conducted by the Hon’ble Finance Minister Ms. Nirmala Sitharaman on 12th November 2020 followed by a press release dated 13th November 2020, Diwali gift for the real estate developers and home buyers was announced in the form of income tax relief where a new amendment was proposed in section 43CA […]...

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Posted Under: Income Tax |

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