Applicability of section 50c
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
04 October 2014
"A" has purchased the residential property from Builder for Rs 100 lacs. Letter of allotment is dt 24 Feb 11 and had made 80% payment. Subsequently Sale agreement is executed in 13 April 11.
Registration is done after paying the stamp duty on Rs 110 lacs (Ready Recknor Value).
Whether provision of Section 50C will be applicable to purchaser "A" and has to pay I T on Rs 10 lacs?
Kindly guide.
Registration is done after paying the stamp duty on Rs 110 lacs (Ready Recknor Value).
Whether provision of Section 50C will be applicable to purchaser "A" and has to pay I T on Rs 10 lacs?
Kindly guide.
04 October 2014
Provisions of section 50C will be applicable to purchaser A if he further sells this property. In that case it will be capital gain for him and sale consideration will be equal to registrar's value at the time of sale deed registration. However for purchaser A provisions of section 56(2)(vii) will apply according to which if property is purchased for less than stamp duty value and the difference between the purchase consideration and stamp duty value is more than Rs. 50000/- then the entire amount will be treated as income in the hands of purchaser. But in your case since the difference between the purchase consideration and stamp duty value is not more than Rs. 50000/- no tax implications will be there.
04 October 2014
1. Section 50C is not applicable to the purchaser viz., "A".
2. Goyal Ji.
Section 56(2)(vii), pre amended, will not apply to "A" because immovable property is transfered to "A" for a consideration whereas section talks about transfer without consideration.
2. Goyal Ji.
Section 56(2)(vii), pre amended, will not apply to "A" because immovable property is transfered to "A" for a consideration whereas section talks about transfer without consideration.
Querist : Anonymous
Querist :
Anonymous
(Querist)
06 October 2014
Difference is of 10 lacs and not 10000
06 October 2014
What I have meant in my previous reply that section 50C is not applicable for purchaser A at the moment but will apply if he further sells his property since it is a capital asset for him.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Amount transferred in HUF Account
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Nursery business
- GST input credit on commercial property
- Working on Gold wastage during Melting of old gold jewellery
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- TDS on Dashcam rent and allied services
- TDS- 2026-27 Q1 Correction
- How do you manage client document collection and follow-ups in your CA/CS practice?
- Royalty payments to the Mining Department for procurement of murum - GST input
- Capital Gains Tax on Inherited Mutual Fund
- IMS (import of goods) ITC related
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
