H.C.Khincha & Co ISSUES IN SECTION 45(5A), 50C AND

Transcript:H.C.Khincha & Co ISSUES IN SECTION 45(5A), 50C AND:
H.C.Khincha & Co ISSUES IN SECTION 45(5A), 50C AND 43CA Presentation by : CA. Naveen Khariwal G Chartered Accountant No. 40, 1st Floor, Laxmi Complex, K R Road, Near Bangalore Medical College Opp: Vani Vilas Hospital Bangalore - 560 002 naveenkhariwalg@gmail.com Mob No : 9880683725 Legal Position uptill AY 2017-18 For JDAs entered into on or before 31-3-2017 : Determination of the Taxable Event/Date of Transfer of Land by the landowner to the developer - Capital Gains arise on "transfer" of a capital asset. The Finance Act, 1987 introduced sub-clause (v) and (vi) to Section 2 (47) of the Act and brought into tax ambit, even deemed transfer which is otherwise not transfer under the general law. H.C.Khincha & Co Sec. 2(47) "transfer", in relation to a capital asset, includes- Sec. 2(47)(v) any transaction involving the allowing of the possession of any immovable property to be taken or retained in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882 (4 of 1882) ; or In other words, transfer includes any arrangement or transaction where any rights are handed over in execution of part performance of contract, even though the legal title has not been transferred. Thus by legislation by incorporation, transfer in part performance of contract as provided in Section 53A of the Transfer of Property Act was made applicable to transfer of capital asset for capital gains tax purposes. H.C.Khincha & Co Sec. 2(47)(vi) any transaction (whether by way of becoming a member of, or acquiring shares in, a co-operative society, company or other association of persons or by way of any agreement or any arrangement or in any other manner whatsoever) which has the effect of transferring, or enabling the enjoyment of, any immovable property. Explanation 1- For the purposes of sub-clauses (v) and (vi), "immovable property" shall have the same meaning as in clause (d) of section 269UA.] H.C.Khincha & Co Clause (d) of section 269UA(d) "immovable property" means - (i) any land or any building or part of a building, and includes, where any land or any building or part of a building is to be transferred together with any machinery, plant, furniture, fittings or other things, such machinery, plant, furniture, fittings or other things also. Explanation - For the purposes of this sub-clause, "land, building, part of a building, machinery, plant, furniture, fittings and