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CAPITAL GAINS

sonia sharma (STUDENT) (36 Points)

04 April 2010

for A.Y. 2010-2011..IPCC MAY.2010 Attempt....Capital gains mein Section 50C ke alava kuch change hua hai ...kya?

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Max Payne (employed) (2574 Points)
Replied 04 April 2010

A small but crucial change was there in 50C

I assume u already know what 50C talks about.

People were avoiding tax by avoiding registration of the transfer.

So the guideline value was not being "Assessed" by a state authority for determination of stamp duty, in such a case, dept could not take the guideline value as the consideration.

Hence the words "or assessable" was inserted in sec 50C(1), which now reads as below

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 thanthe value adopted or assessed or assessable by any authority of a State Government (hereafter in this section referred to as the “stamp valuation authority”) for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed or assessable shall, for the purposes of section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer.

and explanation 2 was also inserted

For the purposes of this section, the expression “assessable” means the price which the stamp valuation authority would have, notwithstanding anything to the contrary contained in any other law for the time being in force, adopted or assessed, if it were referred to such authority for the purposes of the payment of stamp duty