section 50C

Deeming Fiction for Real Estate: Is It beyond Reality?

Income Tax - One of the most controversial provisions, which had a huge impact on the taxation of Real Estate Transactions, was the introduction of concept of Deeming Fiction through Section 50C....

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Analysis of S. 50C of Income Tax Act, 1961

Income Tax - Section 50C provides that if the value stated in the instrument of transfer is less than the valuation adopted, assessed or assessable by the stamp duty authorities, the valuation as adopted, assessed or assessable by the stamp duty authorities will be considered for the purpose of computation of capital gains arising on transfer of lan...

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Capital Gains on Income From Sale of Agricultural Land

Income Tax - Sale of land resulting in business income The first and most important issue to be determined is whether the land is held as investment or stock in trade. If the agricultural land is held as stock in trade then the sale of such lands is taxable as business income and no exemption under the Act is provided in this regard....

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Section 50C – Tax Provisions, Assessment, Case Laws

Income Tax - Section 50C was introduced in the Income-tax Act, 1961 by the Finance Act, 2002 with effect from 1-4-2003 for substituting valuation done for Stamp Valuation purposes as full value of consideration in place of apparent consideration shown by the transferor of capital asset, being land or building and, accordingly, calculating capital gain...

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Amendment to Section 50C by FA 2018 curative? Hence retrospective?

Income Tax - The author discusses that recent amendment by Finance Act, 2018 to section 50C of allowing 5% deviation may be curative in nature and hence there is a case that the same may be treated as having a retrospective effect from the date on which section 50C came into force i.e. 1-4-2003. IT will reduce burden […]...

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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 avoided merely for sufficiency of exemption u/s 54EC

Jagdish C. Dhabalia Vs ITO (Bombay High Court) - While giving full effect to the deeming fiction contained under section 50C of the Act for the purpose of computation of the capital gain under section 48, for which section 50C is specifically enacted, the automatic fallout thereof would be that the computation of the assessee’s capital gain and ...

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Section 50C cannot be invoked if sale has not taken place

Shri Vinod Kumar Chugh Vs ITO (ITAT Delhi) - Shri Vinod Kumar Chugh Vs ITO (ITAT Delhi) Conclusion: Section 50C could be invoked only when sale had taken place during the year. As the sale of vacant plot by assessee stood completed in the year 1991, there was no question of invoking the provision of section 50C for taxing the long term capital...

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Deeming section 50 cannot be extended to restrict deduction u/s 54F

DCIT Vs Shri Hrishikesh D. Pai (ITAT Mumbai) - DCIT Vs Shri Hrishikesh D. Pai (ITAT Mumbai) Conclusion: Assessee was entitled for deduction u/s. 54F on the capital gains arising on the sale of depreciable assets being commercial flats computed in the manner laid down in Section 50 read with Section 48, 49 and 45  and  section 50 was a deemed p...

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In case of Encumbered Property, Stamp Duty value cannot be adopted as Sale Value

Sir Mohd. Yusuf Trust Vs ACIT (ITAT Mumbai) - Where property held by assessee was encumbered and, thus, she was not absolute owner of property, while computing capital gain arising from transfer of such a property, market value of property as taken for purpose of payment of stamp duty could not be adopted as sale consideration by applying provi...

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Valuation of stamp authority cannot be adopted in case of long gap between date of MOU execution and formal development agreement

PCIT Vs Executor of Estate of Late Smt. Manjula A. Shah (Bombay High Court) - PCIT Vs Executor of Estate of Late Smt. Manjula A. Shah (Bombay High Court) From the record, it can thus be seen that there were two significant factors why the CIT(A) and the Tribunal did not adopt the valuation of the stamp authority for the purpose of collecting capital gain tax in the h...

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section 50C’s Popular Posts

Recent Posts in "section 50C"

Section 50C cannot be avoided merely for sufficiency of exemption u/s 54EC

Jagdish C. Dhabalia Vs ITO (Bombay High Court)

While giving full effect to the deeming fiction contained under section 50C of the Act for the purpose of computation of the capital gain under section 48, for which section 50C is specifically enacted, the automatic fallout thereof would be that the computation of the assessee’s capital gain and consequently the computation of exemptio...

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Posted Under: Income Tax |

Section 50C cannot be invoked if sale has not taken place

Shri Vinod Kumar Chugh Vs ITO (ITAT Delhi)

Shri Vinod Kumar Chugh Vs ITO (ITAT Delhi) Conclusion: Section 50C could be invoked only when sale had taken place during the year. As the sale of vacant plot by assessee stood completed in the year 1991, there was no question of invoking the provision of section 50C for taxing the long term capital gains. […]...

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Deeming section 50 cannot be extended to restrict deduction u/s 54F

DCIT Vs Shri Hrishikesh D. Pai (ITAT Mumbai)

DCIT Vs Shri Hrishikesh D. Pai (ITAT Mumbai) Conclusion: Assessee was entitled for deduction u/s. 54F on the capital gains arising on the sale of depreciable assets being commercial flats computed in the manner laid down in Section 50 read with Section 48, 49 and 45  and  section 50 was a deemed provision, therefore, its […]...

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In case of Encumbered Property, Stamp Duty value cannot be adopted as Sale Value

Sir Mohd. Yusuf Trust Vs ACIT (ITAT Mumbai)

Where property held by assessee was encumbered and, thus, she was not absolute owner of property, while computing capital gain arising from transfer of such a property, market value of property as taken for purpose of payment of stamp duty could not be adopted as sale consideration by applying provisions of section 50C....

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Valuation of stamp authority cannot be adopted in case of long gap between date of MOU execution and formal development agreement

PCIT Vs Executor of Estate of Late Smt. Manjula A. Shah (Bombay High Court)

PCIT Vs Executor of Estate of Late Smt. Manjula A. Shah (Bombay High Court) From the record, it can thus be seen that there were two significant factors why the CIT(A) and the Tribunal did not adopt the valuation of the stamp authority for the purpose of collecting capital gain tax in the hands of the assessee. Firstly, there was...

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FMV as on Date of Sale Agreement is Relevant for Section 50C

Ms. Balmer Lawrie Van Leer Ltd. Vs ACIT (ITAT Mumbai)

Provision of section 50C is applicable as on the date of execution of sale agreement and accordingly the fair market value of the property as on the date of sale agreement is to be taken....

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Section 50C not applies to Sale of right to property

Baniara Engs (P) Ltd. Vs ITO (ITAT Kolkata)

Baniara Engs (P) Ltd. Vs ITO (ITAT Kolkata) From the reading of Sec. 50C, it is evident that Sec. 50C is a deeming provision and it extends to only to land or building or both. Section 50C can come into play only in a situation where the consideration received or accruing as a result of the […]...

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Land with no agricultural activities situated within 8 km. of local municipal limits is capital asset

Girdhari Lal Vs ITO (ITAT Delhi)

Girdhari Lal Vs ITO (ITAT Delhi) The test for determining whether the impugned land is agriculture bear mainly on the nature or character of the land, and not merely on the actual user or non-user at a particular point of time. If the land is not actually appropriated for agricultural purposes, the minimal requirement is […]...

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Deeming Fiction for Real Estate: Is It beyond Reality?

One of the most controversial provisions, which had a huge impact on the taxation of Real Estate Transactions, was the introduction of concept of Deeming Fiction through Section 50C....

Read More
Posted Under: Income Tax |

Section 50C not applies if Assessee invests entire sale consideration in new house property U/s. 54F

ITO Vs Raj Kumar Parashar (ITAT Jaipur)

Provision of section 50C(1) of the Act are not applicable to section 54F for the purpose of determining the meaning of full value of consideration....

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