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CA Sandesh Mundra

Consult Us For Construction

Importance of Stamp Duty Reinstated in some more Direct Tax Amendments

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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. Private 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 as stock in 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.

Source: http://www.indiantaxupdates.com

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CA Sandesh Mundra, Consultant – Management Audit and Indirect Taxation - Chartered Accountant, Diploma in Information System Audit, Diploma in Insurance & Risk Management , Certificate from ICAI on International Financial Reporting Standards. Actively associated with clients in the industrial construction sector since last 9 years.He possesses special skills in structuring the indirect tax component of the works contracts and as management auditor, has visited several construction sites in various states like Orissa, Rajasthan, Gujarat, Maharasthra, Madhya Pradesh etc. During the course of said visits he has been to very large industrial complexes, refineries, power plants etc


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