section 50C

Budget 2021- Rationalises provision of slump sale

Income Tax - Section 50B of the Act contains special provision for computation of capital gains in case of slump sale. Sub-section (42C) of section 2 of the Act defines ‘slump sale’ to mean the transfer of one or more undertakings as a result of sale for lump sum consideration without value being assigned to individual assets and […...

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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 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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Restrictions on Cash Transactions in Real Estate under Income Tax

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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Surgical Strike on Cash Transactions

Income Tax - a) Legal Measure Applicable to Receipt of Money i. Section 13A : Exemption for certain income of political parties No donation exceeding Rs.2000 is received by such political party otherwise than by an account payee cheque drawn on a bank or an account payee bank draft or use of electronic clearing system through a bank […]...

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Contribution of Land or Building in a partnership firm: Tax Impact

Income Tax - Many times it happens that a person contributes capital in a partnership firm in the form of land or building in order to become a partner. It has been noted that the tax consequence in such cases is not clear since two sections comes into play in such kind of transactions-Section 45(3) and Section 50C of the Income Tax Act, 1961. The afo...

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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 50C: Option for adopting stamp duty value on date of agreement- ICAI Suggestion

Income Tax - In relation to computing capital gains tax liability on transfer of land or building, amendment made via the Finance Act, 2016 gives an option for considering the stamp duty value as on date of agreement instead of stamp duty value on date of registration...

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Provide relief when agreement date fixing sale consideration & Registration Date not same

Income Tax - Rationalisation Of Section 50c To Provide Relief Where Sale Consideration Fixed Under Agreement To Sell- Section 50C makes a special provision for determining the full value of consideration in cases of transfer of immovable property. It provides that where the consideration declared to be received or accruing as a result of the transfer...

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Section 50C cannot be applied in the year in which Transfer not taken palce

Armatic Engineering (P) Ltd. Vs DCIT (ITAT Bangalore) - Armatic Engineering (P) Ltd. Vs DCIT (ITAT Bangalore) Regarding the issue of applicability of section 50C of the Act, the assessee objected for adopting value of 50C as per guidance value, at the time of assessment, a letter requesting for reference to the valuation itself was also made by letter da...

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Section 50C of the Act does not operate to change year of transfer

Ayi Vaman Narasimha Acharya Vs DCIT (ITAT Bengaluru) - Ayi Vaman Narasimha Acharya Vs DCIT (ITAT Bengaluru) Under section 45(1) of the Act, the charge on capital gain is in the year of transfer. Section 45(1) of the Act clearly lays down that any gain arising on the transfer of the capital asset effected in the previous year shall be chargeable to incom...

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Section 50C- Value on Sale Agreement date to be adopted & not the value on date of Sale Deed

Prakash Chand Bethala Vs DCIT (ITAT Bangalore) - Prakash Chand Bethala Vs DCIT (ITAT Bangalore) Section 50C provides that where the consideration received or accruing as a result of transfer by an assessee of a capital asset being rent or building or both is less than the value adopted or assessed by any authority for the purpose of payment of sta...

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Section 50C- AO to adopt guideline value on sale date of agreement & not on sale deed date

N.A. Haris Vs Add. CIT (ITAT Bangalore) - N.A. Haris Vs Add. CIT  (ITAT Bangalore) In this case, there is no dispute that the agreement to sale the impugned residential flats were entered into financial years 2006-2007 and 2007-2008. There is no dispute for this fact. Now the contention of the assessee is that for determining guideline val...

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LTCG Calculation- Date of Sale Agreement Vs. Sale Deed

Prakash Chand Bethala Vs DCIT (ITAT Bangalore) - Prakash Chand Bethala Vs DCIT (ITAT Bangalore) In the present case, the AO applied the provisions of section 50C of the Act on the basis of Sale Deed executed by the assessee on 9.3.2007. At this stage, it is appropriate to observe that there was an Agreement of Sale executed by assessee on 8.3.1993...

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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 50C"

Section 50C cannot be applied in the year in which Transfer not taken palce

Armatic Engineering (P) Ltd. Vs DCIT (ITAT Bangalore)

Armatic Engineering (P) Ltd. Vs DCIT (ITAT Bangalore) Regarding the issue of applicability of section 50C of the Act, the assessee objected for adopting value of 50C as per guidance value, at the time of assessment, a letter requesting for reference to the valuation itself was also made by letter dated 19.03.2015 addressed to the [&hellip...

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Section 50C of the Act does not operate to change year of transfer

Ayi Vaman Narasimha Acharya Vs DCIT (ITAT Bengaluru)

Ayi Vaman Narasimha Acharya Vs DCIT (ITAT Bengaluru) Under section 45(1) of the Act, the charge on capital gain is in the year of transfer. Section 45(1) of the Act clearly lays down that any gain arising on the transfer of the capital asset effected in the previous year shall be chargeable to income tax […]...

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Section 50C- Value on Sale Agreement date to be adopted & not the value on date of Sale Deed

Prakash Chand Bethala Vs DCIT (ITAT Bangalore)

Prakash Chand Bethala Vs DCIT (ITAT Bangalore) Section 50C provides that where the consideration received or accruing as a result of transfer by an assessee of a capital asset being rent or building or both is less than the value adopted or assessed by any authority for the purpose of payment of stamp duty in […]...

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Section 50C- AO to adopt guideline value on sale date of agreement & not on sale deed date

N.A. Haris Vs Add. CIT (ITAT Bangalore)

N.A. Haris Vs Add. CIT  (ITAT Bangalore) In this case, there is no dispute that the agreement to sale the impugned residential flats were entered into financial years 2006-2007 and 2007-2008. There is no dispute for this fact. Now the contention of the assessee is that for determining guideline value by invoking the provisions of [&helli...

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LTCG Calculation- Date of Sale Agreement Vs. Sale Deed

Prakash Chand Bethala Vs DCIT (ITAT Bangalore)

Prakash Chand Bethala Vs DCIT (ITAT Bangalore) In the present case, the AO applied the provisions of section 50C of the Act on the basis of Sale Deed executed by the assessee on 9.3.2007. At this stage, it is appropriate to observe that there was an Agreement of Sale executed by assessee on 8.3.1993 and […]...

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Budget 2021- Rationalises provision of slump sale

Section 50B of the Act contains special provision for computation of capital gains in case of slump sale. Sub-section (42C) of section 2 of the Act defines ‘slump sale’ to mean the transfer of one or more undertakings as a result of sale for lump sum consideration without value being assigned to individual assets and […...

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Posted Under: Income Tax |

Section 50C | Stamp duty value of Date of agreement or registration?

Ashokbhai Chinubhai Bharwad Vs ITO (ITAT Ahmedabad)

Ashokbhai Chinubhai Bharwad Vs ITO (ITAT Ahmedabad) The assessee has shown his share of sale consideration at Rs.81.00 lakhs being 25% share. The AO further found that sub-Registrar, Ahmedabad City Taluka had valued the property for the purpose of stamp duty payment at Rs.5,24,83,000/- as against sale consideration shown by the assessee a...

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Section 50C: Benefit of Higher Tolerance band of 10% is retrospective

Maria Fernandes Cheryl Vs ITO (ITAT Mumbai)

Maria Fernandes Cheryl Vs ITO (ITAT Mumbai) Once legislature very graciously accepts, by introducing the legal amendments in question, that there were lacunas in the provisions of Section 50 C in the sense that even in the cases of genuine variations between the stated consideration and the stamp duty valuation, anti-avoidance provisions ...

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Provisions of section 50C cannot be incorporated in computation of block of assets

DCIT Vs Futurz Next Services (Private) Limited (ITAT Delhi)

Now the question is whether it should be reduced by the value as determined under section 50C of the act or actual money received by the assessee. The provisions of section 50C cannot be incorporated in the computation of block of the assets for the simple reason that it only substitutes the full value of the consideration received or acc...

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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...

Read More
Posted Under: Income Tax |

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