FCS Deepak Pratap Singh
Quick Summary
Dear Friends, You know that as a citizen we have tendency to save/avoid/evade 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 e
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FAQ :
Section 50C was introduced to curb tax evasion and the generation of black money in the real estate sector by ensuring that property transfers are valued at least at the Stamp Duty Value.
Section 50C applies if there is a transfer of land or building (or both), and the sale consideration is less than the Stamp Duty Value assessed by the relevant authorities.
If the sale consideration is less than the Stamp Duty Value, the Stamp Duty Value is deemed to be the full value of consideration for the purpose of calculating capital gains.
Section 43CA applies to the transfer of assets that are stock-in-trade (like for builders and developers) where the sale consideration is less than the Stamp Duty Value. The Stamp Duty Value is deemed to be the full consideration for computing income from business or profession.
Yes, an assessee can dispute the Stamp Duty Valuation. In such cases, the Assessing Officer may refer the property valuation to a Valuation Officer under Section 55A of the Income Tax Act.
If the date of agreement and registration differ, and some consideration was received before the agreement date, the Stamp Duty on the date of the agreement will be considered.
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