Section 43ca

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 November 2016 My client entered into an agreement to purchase a flat in Aug 2009 and the sale deed was registered in 2013. At the time of agreement my client paid an amount of Rs 100000 in cash as booking amount and the final amount through cheque at the time of registry in 2013. Whether 43CA will be applicable to the purchaser ie my client and whether he will have to pay the tax on the differential amount of circle rate on the date of registry and agreement value. Please explain. Thanks in advance

Amol S Joglekar

Amol S Joglekar (Expert)
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04 November 2016 The agreement was executed in 2009, so the circle rate of 2009 would be applicable and not that of 2013

Querist : Anonymous

Querist : Anonymous (Querist)

04 November 2016 But the first payment through cheque was made in 2013

Amol S Joglekar

Amol S Joglekar (Expert)
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06 November 2016 Please go through section 43CA(3) : Where the date of agreement fixing the value of consideration for transfer of the asset and the date of registration of such transfer of asset are not the same, the value may be taken as the value assessable by any authority of a State Government for the purpose of payment of stamp duty in respect of such transfer on the date of the agreement.
https://www.incometaxindia.gov.in/Pages/acts/income-tax-act.aspx

Querist : Anonymous

Querist : Anonymous (Querist)

08 November 2016 But Section 43CA(4) says The provisions of sub-section (3) shall apply only in a case where the amount of consideration or a part thereof has been received by any mode other than cash on or before the date of agreement for transfer of the asset. It means if value as on date of agreement can be accepted only if any any consideration was paid through cheque on or before the date of agreement