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: VAT RATES :: list of goods taxed at 4% :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: cpt :: TDS :: ACCOUNTING STANDARDS :: VAT Audit :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
News Headlines »
 Filing of online return for 4th quarter of 2016-17 — extension of period thereof
 CBDT simplifies ITR filing process from FY18
 Govt extends service tax return filing date to April 30
 No move to tax farm income, clarifies Arun Jaitley
 New board for indirect taxes to become operational from June 1
  9 changes that came into effect from April 1
 First time filing income tax? Here's all you need to know about Form 16 and Form 26AS
 New Opening Financial Controller Chartered Accountant (Manufacturing Plant) A Leading Company
 Income Tax Filing 2017: All you want to know about the single page ITR form SAHAJ
 How to benefit from investments in tax saving mutual funds
 60 per cent of income tax notices on fishy cash deposits returned

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 2017 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