Special provision for the full value of consideration in certain cases.

Special provision for the full value of consideration in certain cases.

S-50C of IT Act, 1961

Consideration received from the transfer of a capital asset, being land or building or both

At a Value less than SDV – STAMP DUTY VALUE(for the purpose of payment of stamp duty in respect of such transfer)

The STAMP DUTY VALUE (SDV) shall be deemed to be the FVC (full value of the consideration) received or accruing as a result of such transfer.

What date shall be adopted for Computing Full Value Consideration (FVC)?

Where the date of the agreement for fixing the amount of consideration
And
the date of registration for the transfer of the capital asset is not the same,

the value adopted by the stamp valuation authority on the date of agreement may be taken.

Provided that the amount of consideration, or a part thereof, has been received by way of:

  • 1. A/c payee cheque or
  • 2. A/c payee bank draft or
  • 3. Electronic clearing system through a bank account or
  • 4. Through such other electronic mode as may be prescribed,

on or before the date of the agreement for transfer.

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Relaxation:-

Where SDV <= 110% of Consideration (as a result of the transfer),

Actual Consideration so received shall be deemed to be the FVC

What Happens If the Seller Does Not Accept the Value Adopted by SVA?

There is a possibility that the value adopted by Stamp Valuation Authority (SVA) may not be depicting the FMV at all times or the seller himself may not be satisfied with the value adopted by Stamp Valuation Authority (SVA) based on factors known to him.

Though stamp duty is generally borne by the purchaser, the purchaser may not be very concerned with the value adopted by SVA as it will be its cost of purchase.

S-194-O Payment of certain sums by the e-commerce operator to participant 

However, it makes a huge difference to the seller as it impacts his income tax which can be substantial based on the value.

 

As it is a matter of income tax for the seller, he is allowed to question the value adopted by SVA and claim the value is more than FMV under Section 50C before the income-tax authority unless such value is already questioned before any other authority or court.

In such cases, the income tax officer is required to make a reference to the valuation officer and market value will be determined by such a valuation officer.

The valuation officer, while determining market value, has to call for records/ documents from the taxpayer if required and give the taxpayer an opportunity of being heard and passing an order in writing, stating his valuation. Any value determined by the valuation officer can also be questioned before higher authorities.

THE GOVERNMENT HAS NOTIFIED SOME IMPORTANT POINTS ON NEW ITR FORMS.

There are a few key points to remember about the new ITR forms that the government has announced.

The Income Tax Return Forms (ITR Forms) for the Assessment Year 2021-22 have been released by the Central Board of Direct Taxes (CBDT).

Changes to the Current ITR Forms

In contrast to last year’s ITR Forms, no major improvements have been made to the ITR Forms. Only the bare minimum changes were introduced as a result of revisions to the Income-tax Act of 1961.

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This has been achieved in light of the current COVID pandemic crisis.

THE CBDT AMENDS RULE 6G AND REVISES TAX AUDIT FORM 3CD

Details about ITR Forms:
Easy ITR Forms to Make Doing Business Easier
  • Simpler ITR Forms 1 (Sahaj) and 4 (Sugam) are available for a significant number of small and medium taxpayers.
  • A person with income up to Rs. 50 lakh who receives income from salary, one house property, or other sources may file a Sahaj [ITR-1] (interest etc.).
  • Individuals, Hindu Undivided Families (HUFs), and companies (other than Limited Liability Partnerships (LLPs)) with total income up to Rs. 50 lakh and income from company and profession computed under the presumptive taxation provisions are entitled to file Sugam [ITR-4].
Other Forms
  • Individuals and HUFs without business or occupation income (and therefore not entitled to file Sahaj) can file ITR Form 2.
  • Individuals and HUFs with business or technical income will file ITR Form 3.
  • ITR Form 5 may be filed by individuals, HUFs, and companies such as partnership firms, LLPs, and so on.
  • ITR Form 6 may be filed by companies
  • ITR Form 7 may be filed by trusts, political parties, charitable organisations, and those who are seeking exempt profits under the Act.

Income tax will soon be processing in one day; Integrated e-filing system needs to develop by Infosys

The administration on Wednesday said IT major Infosys will build up the cutting edge pay charge recording framework for Rs 4,241.97 crore which will chop down the handling time for comes back to one day from 63 days and speed up discounts.

The Cabinet, led by Prime Minister Narendra Modi, gave its “endorsement to consumption authorize of Rs 4,241.97 crore for Integrated E-recording and Centralized Processing Center 2.0 Project of the Income Tax Department”, Union clergyman Piyush Goyal said

Preparation media about the choice, he said the handling time at present for Income Tax Reurn (ITR) is 63 days and it will boil down to one day after execution of the task.

Goyal said the venture is relied upon to be finished in year and a half and will be propelled following three months of testing.

Infosys, he stated, has been chosen to execute the task after the offering procedure.

The present framework, he stated, has been a triumph and new undertaking will be more assessment amicable.

The e-recording and Centralized Processing Center (CPC) ventures have empowered start to finish mechanization of all procedures inside the Income Tax Department utilizing different inventive strategies to give citizen administrations and to advance deliberate consistence.
The Cabinet likewise authorized a merged expense of Rs 1,482.44 crore for the current CPC-ITR 1.0 undertaking up to 2018-19.

Goyal additionally educated that expense discounts worth Rs 1.83 lakh crore have been issued so far in the current monetary.

The choice will guarantee straightforwardness and responsibility other than quicker handling of profits and issue of discounts to the citizens’ ledger specifically with no interface with the Income Tax Department.

The expansive’s target of the reconciliation venture incorporates quicker and exact results for citizen, upgrading client involvement with all stages, enhancing mindfulness and training through persistent commitment, as per an official discharge.

Furthermore, it will likewise be advancing deliberate expense consistence and overseeing extraordinary interest.

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