Sec 50C
This query is : Open
CA Manish Khanna
(Querist)
17 July 2011
Land is located in Green Belt. Green Belt is an area as per law where no building can be constructed.
(A) This land is sold at rates below circle rates.
Decide capital gains vis a vis Sec 50C.
(B) The agreement to sell the same land was entered at a price above sale rate but by the time sale deed was registered the circle rates rose higher than the contracted rates. The sale was concluded at lower rates. Will Sec 50C be apllicable?
(A) This land is sold at rates below circle rates.
Decide capital gains vis a vis Sec 50C.
(B) The agreement to sell the same land was entered at a price above sale rate but by the time sale deed was registered the circle rates rose higher than the contracted rates. The sale was concluded at lower rates. Will Sec 50C be apllicable?
CA PARAS BAFNA
(Expert)
17 July 2011
Land is located in Green Belt. Green Belt is an area as per law where no building can be constructed.
(A) This land is sold at rates below circle rates. Decide capital gains vis a vis Sec 50C.
Reply-
As construction is not permitted, the prescribed circle rates also must be according to the situation and use of the land.
.
However, possibilities of a common valuation for the whole zone/area can not be denied.
.
In the opinion of the assessee, if the circle rates are not favorable to him, he may show actual sales consideration for the purpose of calculation of capital gains.
.
On being called by the AO he may explain the reasons in writing. He may produce private valuer's V. Report also.
.
The AO if not satisfies , then request can be made to refer the valuation part to the department's valuation officer. If the valuation as shown by the
DVO is lesser then the circle rate, capital gains will be calculated accordingly.
(A) This land is sold at rates below circle rates. Decide capital gains vis a vis Sec 50C.
Reply-
As construction is not permitted, the prescribed circle rates also must be according to the situation and use of the land.
.
However, possibilities of a common valuation for the whole zone/area can not be denied.
.
In the opinion of the assessee, if the circle rates are not favorable to him, he may show actual sales consideration for the purpose of calculation of capital gains.
.
On being called by the AO he may explain the reasons in writing. He may produce private valuer's V. Report also.
.
The AO if not satisfies , then request can be made to refer the valuation part to the department's valuation officer. If the valuation as shown by the
DVO is lesser then the circle rate, capital gains will be calculated accordingly.
CA PARAS BAFNA
(Expert)
17 July 2011
B) The agreement to sell the same land was entered at a price above sale rate but by the time sale deed was registered the circle rates rose higher than the contracted rates. The sale was concluded at lower rates. Will Sec 50C be apllicable?
Reply-
The point of time described for the sales consideration by Section 50C is as -"as a result of transfer" which clearly indicates that the section applies on the basis of valuation as taken for transfer by the stamp officer.
In my view, 50C will apply.
Reply-
The point of time described for the sales consideration by Section 50C is as -"as a result of transfer" which clearly indicates that the section applies on the basis of valuation as taken for transfer by the stamp officer.
In my view, 50C will apply.
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
- Visiting card purchase
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Query on effect of registration of property
- GST on reimbursement of expenses
- Number of years as per AS amortisation of Goodwill
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Wrong CMPo8 file
- Additional trade name
- Whether output tax is taken credit by purchaser
- Equity Share Sale and Purchase
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
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
