SECTION 50C, aMMD VIDE FINANCE ACT 2009
Shikha Bharalawala
(Querist) 10 December 2009
This query is : Resolved
EXPLANATION REQUIRED
Vineet
(Expert) 10 December 2009
What explanation is required?
Shikha Bharalawala
(Querist) 10 December 2009
the ammendment provides for taxing the receipt on the basus of stamp duty even if it is not registered in the year of taxability.
Vineet
(Expert) 10 December 2009
So what is the query? Please be specific.
Raj Kumar Makkad
(Expert) 10 December 2009
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A V Vishal
(Expert) 10 December 2009
The existing provisions of section 50C provide that where the consideration received or accruing as a result of the transfer of a capital asset, being land or building or both, is less than the value adopted or assessed by a stamp valuation authority, the value so adopted or assessed is deemed to be the full value of the consideration for computing capital gain.
Present scope of the provisions does not specifically include transactions which are not registered with stamp duty valuation authority, and executed through agreement to sell or power of attorney. Cases were happening that a document is not lodged for registration and therefore may not be presented for assessment by the stamp valuation authorities. Tribunals took a view that if the document is not registered or not assessed under the relevant stamp duty laws, the provisions of section 50C are not applicable.
To avoid such situations, therefore, now it is being provided that in such transactions whether stamp duty is assessed or assessable, the provisions of section 50C would apply.
This amendment will take effect from 1st October, 2009 and shall accordingly apply in relation to transactions undertaken on or after such date.
It is explained that the Expression assessable means the price which the stamp valuation authority would have adopted or assessed, if it were referred to such authority for the purposes of the payment of stamp duty.
joyce
(Expert) 11 December 2009
Vishal explination may help u I hope so..
Vineet
(Expert) 11 December 2009
The explanation given by Vishal is intention of introducing the amendment as per explanatory notes to the Finance Bill.
However, given that amendment has been effected, what is the query?
A V Vishal
(Expert) 11 December 2009
Yes Vineet, the querist too wants to seek the intention of the amending act
Vineet
(Expert) 12 December 2009
Is it so? The amended provision is quite unambiguous in this regard.
A V Vishal
(Expert) 12 December 2009
Yes, it is unambiguous but the thing is the querist is not an expert to understand technical details.
Vineet
(Expert) 13 December 2009
OK. It didn't appear from the query.
Thanks.
