Hidden proposal I --in Income Tax Act 1961 by Finance Bill 2013
Under the existing provisions of section 56, the transfer of immoveable properties (stamp value of which exceeds Rs.50,000) without consideration is treated as income in the hands of recipient but transfer of such property for inadequate consideration is outside the ambit of such provisions.
It is now proposed that if the consideration for transfer of such property is less than the stamp duty value of the property by an amount exceeding Rs.50,000/-then the difference between the stamp duty value and the stated consideration shall be treated as income of the recipient.
For example, the stamp duty value of the property is one lakh while the consideration for transfer is Rs.30,000/-. The difference of Rs.70,000/- shall be deemed income of the recipient.
However, it is also proposed that where the date of agreement and date of registering the document is different then, stamp duty value would be taken as on the date of agreement provided such consideration or part thereof had been paid by any mode other than cash on or before the date of agreement.
Necessary amendment is being proposed in section 56.
Hidden proposal II --in Income Tax Act 1961 by Finance Bill 2013
Agricultural income & capital gain on agricultural land:
under the existing provisions, the distance from the limits of the municipality is to be measured by road. It is now proposed that distance is to be measured aerially. How the aerial distance will be calculated is not prescribed.
Further, under the proposed amendment, the distance from the municipality shall now be 2 KM from the local limits of municipality having population of more than 10000 but not exceeding one lakh; 6 KM from the local limits of municipality having population of more than one lakh but not exceeding ten lakhs; and 8 KM from the local limits of municipality having population of more than 10 lakhs.
(The necessary amendments have been made in sections 2(1A) & 2(14))
Under the existing provisions of section 56, the transfer of immoveable properties (stamp value of which exceeds Rs.50,000) without consideration is treated as income in the hands of recipient but transfer of such property for inadequate consideration is outside the ambit of such provisions.
It is now proposed that if the consideration for transfer of such property is less than the stamp duty value of the property by an amount exceeding Rs.50,000/-then the difference between the stamp duty value and the stated consideration shall be treated as income of the recipient.
For example, the stamp duty value of the property is one lakh while the consideration for transfer is Rs.30,000/-. The difference of Rs.70,000/- shall be deemed income of the recipient.
However, it is also proposed that where the date of agreement and date of registering the document is different then, stamp duty value would be taken as on the date of agreement provided such consideration or part thereof had been paid by any mode other than cash on or before the date of agreement.
Necessary amendment is being proposed in section 56.
Hidden proposal II --in Income Tax Act 1961 by Finance Bill 2013
Agricultural income & capital gain on agricultural land:
under the existing provisions, the distance from the limits of the municipality is to be measured by road. It is now proposed that distance is to be measured aerially. How the aerial distance will be calculated is not prescribed.
Further, under the proposed amendment, the distance from the municipality shall now be 2 KM from the local limits of municipality having population of more than 10000 but not exceeding one lakh; 6 KM from the local limits of municipality having population of more than one lakh but not exceeding ten lakhs; and 8 KM from the local limits of municipality having population of more than 10 lakhs.
(The necessary amendments have been made in sections 2(1A) & 2(14))
Hidden proposal III --in Income Tax Act 1961 by Finance Bill 2013
Under the existing provisions, the provisions of section 50C are applicable only to the transfer of capital assets. Such provisions are not applicable to sale or transfer of immoveable properties by a person engaged in the business of real estate.
It is now proposed to insert section 43CA, similar to section 50C, so as to apply such deeming provisions to the transactions of transfer of immoveable properties by a person engaged in the business of real estate. For example, if the builder transfers a flat to the buyer at a consideration of Rs.30 lakhs but value for the purpose of stamp duty is taken at Rs.35 lakhs then, the profit of the builder shall be computed as if the sale consideration is Rs.35 lakhs.
It is also proposed that the existing provisions of section 50C(2) will apply to such transactions also.
However, it is also proposed that where the date of agreement and date of registering the document is different then, stamp duty value would be taken as on the date of agreement provided such consideration or part thereof had been paid by any mode other than cash on or before the date of agreement.
Under the existing provisions, the provisions of section 50C are applicable only to the transfer of capital assets. Such provisions are not applicable to sale or transfer of immoveable properties by a person engaged in the business of real estate.
It is now proposed to insert section 43CA, similar to section 50C, so as to apply such deeming provisions to the transactions of transfer of immoveable properties by a person engaged in the business of real estate. For example, if the builder transfers a flat to the buyer at a consideration of Rs.30 lakhs but value for the purpose of stamp duty is taken at Rs.35 lakhs then, the profit of the builder shall be computed as if the sale consideration is Rs.35 lakhs.
It is also proposed that the existing provisions of section 50C(2) will apply to such transactions also.
However, it is also proposed that where the date of agreement and date of registering the document is different then, stamp duty value would be taken as on the date of agreement provided such consideration or part thereof had been paid by any mode other than cash on or before the date of agreement.
