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Sec.43ca: sale of immovable property as stock-in-trade

366 views 2 replies

shree

Student

122 Points Joined January 2014

Respected seniors',

My query is regarding sale of immovable property in the course of business (of builders/ developers) as stock-in -trade. If the sale of flats are below the rate fixed by stamp valuation authority, will the difference be taxed in the hands of builder ? (Plz. refer sec.43CA of IT Act,1961)

Replies (2)

saurabh kumar

Tax Consultant

348 Points Joined July 2016

Yes definately the difference will be taxed in the hand of builder as per sec 43CA(1)

CA Harshal Totla

Chartered Accountant

2229 Points Joined May 2014

Your question contains answer too.
Yes, section 43CA shall apply in case land or building or both being stock in trade is transferred below the guideline value/stamp duty value during the previous year.