CA Sandesh Mundra
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Importance of Stamp Duty Reinstated in some more Direct Tax Amendments
Section 56 (Amended): Tax on Purchase of Immovable Property at insufficient consideration
Applicability: Individual or HUF
Crux of the Section: Purchase of immovable property by individual or HUF for inadequate consideration (Consideration minus Stamp duty value > 50,000) taxable in the hands of the recipient under “Income from other Sources”.
i) If consideration is less than stamp duty value by an amount exceeding Rs.50,000.
i) Since this section is applicable only on HUF and Individuals the Immovable Property can be purchased on the name of other assessee i.e.Limited Company.
Section 43CA – Application of Stamp Duty Valuation of assets other than Capital Assets
Crux of the Section: Seller of Land or building or both, which is held asin trade have to pay tax on (stamp duty value – consideration).
Applicability: All assessee
i) If consideration is less than stamp duty value arising on account of transfer of an asset being land or building or both (not being a capital asset) shall be substituted by the valuation done by stamp valuation authorities.