Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: TDS :: empanelment :: cpt :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: VAT RATES :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit
 
 
« News Headlines »
 10 ways you get benefited from filing your tax return
 Returns under CGST Act,2017 with Rules
 Ten facts to know about filing income tax return this year
 The Ten Commandments of Tax Filing
 How to claim income tax refund
 How to time your buys to have best of two tax regimes
 Here's why you must always check Form 26AS before filing tax return
 Want to file your income tax return after June 30? Having Aadhaar card is a must
 Timeline for filing of tax returns extended by two months
 Top 5 common mistakes to avoid while filing your income tax returns
 GST rollout on July 1: Deadline for filing tax returns extended

Capital gains tax on development rights may go up
November, 10th 2006

Landowners giving development rights for their property may have to pay more tax on their capital gains, if the government accepts a proposal mooted by top income tax authorities in the coming Budget.

To curb undervaluation in property deals, the Western zone has proposed bringing transfer of rights including development rights under the ambit of a provision in the income tax legislation known as 50C.

This provision allows tax authorities to adopt the valuation made by stamp authorities as the basis for computing capital gains in transactions where the sale consideration is lower than the government-determined rates.

Transfer of development rights entails giving all rights except the ownership right on paper. This means conveyance is not done in such transactions. The provision in the I-T Act was introduced to check black money transactions in property deals.

Under-valuation is assumed to happen when the sale consideration of a capital asset is lower than the rates (or valuation) determined by state government authorities. Stamp authorities value the capital asset for charging stamp duty. A capital asset includes land, building or both under the income tax law. It, however, does not include development right.

Transfer of development rights is not clearly covered under Section 50 C, though it is liable to capital gains tax because it is covered under the definition of transfer in the Income Tax Act.

Tax authorities may want to monitor the transactions relating to transfer of development rights and also collect higher capital gains tax in cases where the sale consideration is lower than the stamp value, said Sanjiv Chaudhary, partner, RSM&Co.

Experts reckon that the surge in demand for commercial and residential property has led to a spurt in deals entailing transfer of development rights. The move may also help in raising stamp duty collections, according to Om Prakash Gupta, controller of stamps, Maharashtra.

Rohit Gera, director, operations, Gera Developments, views this as a positive plan that will go a long way in bringing on par rates paid by developers for their properties relative to the ready reckoner.

Lalit Kumar Jain, chairman, Kumar Builders, however, contends that it may create further hardship for land owners. Normally, the valuation of few properties is much less than ready reckoner prices. Bringing development rights will only compound the burden for land owners, he said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-development

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions