Income Tax on purchase of immovable property

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Dibyendu Majumder (Querist)
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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

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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31 March 2021 Tax will attract u/s 43CA.
Capital gains tax applicable for seller of the property.

Dibyendu Majumder

Dibyendu Majumder (Querist)
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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.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 April 2021 Agree with you pay tax when the property is sold and consider it as profit from business.

Dibyendu Majumder

Dibyendu Majumder (Querist)
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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?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 April 2021 Yes, you are right.......

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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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.

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Dibyendu Majumder

Dibyendu Majumder (Querist)
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01 April 2021 Thank you so much sir

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 April 2021 You are welcome......

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