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 :: cpt :: ACCOUNTING STANDARD :: form 3cd :: VAT Audit :: TDS :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: articles on VAT and GST in India :: VAT RATES :: Central Excise rule to resale the machines to a new company :: due date for vat payment
 
 
News Headlines »
 Is government tapping your phone?
 Income tax department to use analytics to look for discrepancies in bank accounts
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government

Realty cap gains tax sop not for cos
February, 03rd 2007

This is one tax break the government would love to dump but will end up truncating instead: exempting capital gains on real estate if they are invested in specified bonds. The government is examining the option of limiting the benefit to individuals and denying it to companies, partnerships and other organisations.

The government has indicated its intent to phase out several tax exemptions. However, individuals, who are entitled to tax breaks on capital gains realised from property deals, may be spared the axe this time, officials said.

The bonds that offer individuals such a tax shelter are popularly known as 54 EC bonds. However, as happened this fiscal, the government plans to cap the amount that can be raised by issuers of these bonds and also the amount that can be invested in these bonds by individuals. Restricting the benefit to individuals is another option.

Currently, if an investor sells a capital assetfor instance, an immovable propertyafter 36 months from the date of acquisition, the gains from such a sale are treated as long-term capital gains and taxed at 20%.

Individuals, firms, companies and trusts can claim a capital gains tax exemption if they invest these gains in 54 EC bonds. Investor appetite for these bonds has been high, thanks to the current boom in the real estate market.

This fiscal, two issuersstate-owned Rural Electrification Corporation and National Highways Authority of Indiahave been allowed to raise Rs 9,500 crore from these bonds. RECs authorisation has been capped at Rs 8,000 crore and NHAIs at Rs 1,500 crore.

REC raised Rs 4,500 crore in the first tranche while it has been authorised to raise another Rs 3,500 crore in the second. In the first tranche, investors were allowed the flexibility to invest any amount in these bonds. However, when REC was authorised to raise money in the second tranche, the government set a limit of Rs 50 lakh for each applicant.

This means a person who has already invested Rs 50 lakh will not be allotted any more bonds. The cap is meant to ensure that the bonds are not cornered by the super-rich.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Development Software Programming Software Engineering Custom Software Development Requirement Based Software Development Software Solutions Software Serv

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