Income from other sources
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
01 October 2012
Hello!!! I have a query regarding income from other sources.... Under Section 56 , of I T Act, the difference between Stamp duty value and the Agreement value if more than Rs 50,000 would be taxed, for e.g : IF Stamp duty value is Rs 23 lacs and the Agreement value is Rs 32 lacs, so the difference of Rs 9 lacs would be taxed under section 56 ?? Am i correct in understanding the same.... Please give your valualble suggestions with a practical example , if possible..... Thanks in advance.....
01 October 2012
Your interpretation is slightly incorrect.
The actual interpretation is reverse of what you have mentioned in the query.
Agreement Value = Rs. 23 lakhs
Stamp duty value = Rs. 32 lakhs.
Since the stamp duty value exceeds the agreement value by Rs. 50,000 , Rs. 9lakhs shall be taxable under Section 56(2)(vii).
The provision has been inserted to counter transactions where persons show less amount to avoid tax.
The actual interpretation is reverse of what you have mentioned in the query.
Agreement Value = Rs. 23 lakhs
Stamp duty value = Rs. 32 lakhs.
Since the stamp duty value exceeds the agreement value by Rs. 50,000 , Rs. 9lakhs shall be taxable under Section 56(2)(vii).
The provision has been inserted to counter transactions where persons show less amount to avoid tax.
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