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section 43CA
anand is a property dealer and he sold a building in the course of his business to his friend kumar for 50 lakhs ,who is a dealer of vehicles. the stamp duty value on the date of registration was 90 lakhs. Mr. anand received down payment of 20 lakhs by cash on the date of agreement. the stamp duty value on the date of agreement was 70 lakhs. discuss the tax implications in the hands of anand and kumar assuming that anand purchased the building for 40 lakhs
Replies (1)
Stamp value on the date of agreement can be substituted for value on date of reg only if consideration is received by mode other than cash on or before date of agreement. this provision applies for both sec 43ca and 56.. thus for anand 90l minus 40l will be taxed as business income.. since kumar is only a friend, gift taxation shall apply for him and 90l minus 50l will be taxable as ios. Also consider the violation of 269st for receiving cash in excess of 2l
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