Applicable of Section 50 or 50C

Mr.Hitesh Your case squarely falls under the ambitof section 50. You have to compute the capital gains as laid down in sub-section (2)of section 50 as there are no assets falling in the building block. You have said that there is only one building. Please note that sectioin 50 starts with a non-obstante clause. Best Wishes Sathikonda

Dear Sathikonda,

U r rite that Computation will be made as per Sec 50 but "Full Value of Consideration" will be determined as per sec 50 C.

In short there is no conflict in both the sections & hence both will apply.

Mr. Amir Thank you for enlightening me on the subject. Best Wishes Sathikonda

Dear Sathikonda,

Thanks 4 ur gesture......

Dear Hitesh

Section 50C of the Income Tax Act, 1961, which was inserted through Finance Act, 2002 states that, w.e.f 1st April 2003 i.e., from Assessment Year 2003-2004, the value of any capital Asset being land or building, for the purpose of section 48, be deemed to be the value as determined by the State government for the purpose of payment of stamp duty, if the consideration received or accruing as a result of the transfer of such asset is less than the value so determined by the State government. Your case is regarding business asset.  Therefore, section-50C is not applicable in your case.

 

Pragnesh Shah

Dear Pragnesh,

Brother, This was the same thing which came to my mind when I first looked at Sec 50 C...

But then When I go through Sec 50, there is reference of Sec 48 - which says that the provisions of Sec 48 shall apply with following modifications.................

So there is an indirect applicablility of Sec 50 C in case of computation is made u/s 50.

yes it is correct that both the sections will applicable in this case.