Chartered Online Celebrates 1,00,000 Plus Subscribers

01 February, 2018

Print to PDF

Real Estate Price within 5% of Circle Rate is allowable without any Income Tax Adjustment


Real Estate Price within 5% of Circle Rate is allowable without any Income Tax Adjustment

By CA Ankit Gulgulia (Jain)

In Current Scenario where the Transaction Prices of Real Estate Transfer was below the Circle Rate, the Differential would require the tax sufferance. 

Now It is amended that where the Real Estate Transaction Price is within 5% of Circle Rate, there shall be No Adjustment for Tax Purpose.

Hence Simultaneous Amendment to Section 43CA (PGBP), 50C (Capital Gains) and 56(2) (Income From Other Sources ) have been made as under.


43CA – Insertion of Proviso
"Provided that where the value adopted or assessed or assessable by the authority for the purpose of payment of stamp duty does not exceed one hundred and five per cent. of the consideration received or accruing as a result of the transfer[a1] , the consideration so received or accruing as a result of the transfer shall, for the purposes of computing profits and gains from transfer of such asset, be deemed to be the full value of the consideration.";
50C – Insertion of Proviso
"Provided also that where the value adopted or assessed or assessable by the stamp valuation authority does not exceed one hundred and five per cent. of the consideration received or accruing as a result of the transfer, the consideration so received or accruing as a result of the transfer shall, for the purposes of section 48, be deemed to be the full value of the consideration.".
56(2)(x) - Amendment
in sub-clause (b), for item (8), the following item shall be substituted with effect from the 1st day of April, 2019, namely.
8) for a consideration, the stamp duty value of such property as exceeds such consideration if the amount of such excess is more than the higher of the following amounts, namely

1)                  the amount of fifty thousand rupees; and
2)                  the amount equal to five per cent. of the consideration:
In the fourth proviso, in clause (IX), after the words, brackets and figure "clause (1) or", the words, brackets and figures "clause (iv) or clause (v) or'' shall be inserted


0 Comments:

Post a Comment