Income Tax on purchase of immovable property
This query is : Resolved
31 March 2021
Dear Sirs,
My client is purchase a land with residential house property in consideration of 1 crore, whose stamp duty value is 3 crore in the F.Y. 2020-21 relating to the A.Y. 2021-22, My client is dealing purchase/sale of land/ house property & not want to sale the property in same F.Y. i.e. the property kept in stock in trade of my client Is any tax will attract u/s 43CA or 56(2) (x) of the I.T. act in same F.Y. to my clent party ? or any tax will attract under capital gain section of seller party? please clarify. Thanks
My client is purchase a land with residential house property in consideration of 1 crore, whose stamp duty value is 3 crore in the F.Y. 2020-21 relating to the A.Y. 2021-22, My client is dealing purchase/sale of land/ house property & not want to sale the property in same F.Y. i.e. the property kept in stock in trade of my client Is any tax will attract u/s 43CA or 56(2) (x) of the I.T. act in same F.Y. to my clent party ? or any tax will attract under capital gain section of seller party? please clarify. Thanks
31 March 2021
Tax will attract u/s 43CA.
Capital gains tax applicable for seller of the property.
Capital gains tax applicable for seller of the property.
01 April 2021
Please send me any notification about this purchasers taxability as i reading many articalrs that if purchaser who dealing with property and purchase property from a person who held propery ad capital asset need not requre to pay tax upto next sale. In my case saler is a individual and not dealing property.
01 April 2021
Agree with you pay tax when the property is sold and consider it as profit from business.
01 April 2021
So, please confirm me no tax will be lavid u/s 43 CA or 56(2)(x) in hand of the purchasers, who engaged in property dealing untill the property sold, correct?
01 April 2021
Yes, you are right.......
01 April 2021
Section 56(2)(X) shall not apply if property is in nature of stock in trade, raw material and consumable stores of business in hands of recipients.
Message likes :
1 times
01 April 2021
Thank you so much sir
02 April 2021
You are welcome......
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
- Exiting partner in partnership firm in gst portal
- CLOSING STOCK QUERY
- Traces submitting correction statement error
- TDS _Long term Capital Gain ref.sec 214 Table 2
- Taxability of credit in canara bank ET & T section (NRO)
- Loss of interest in PF transfer from EPFO to Trust
- ITR-Capital Gain
- IT returns for fresh job holders
- F&O reporting in ITR
- ITR-3 File/Error Found
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
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
