SPECIAL PROVISION FOR PERSONS ENGAGED IN SALE/PURCHASE OF LAND OR BUILDING

Section 43CA SPECIAL PROVISION FOR PERSONS ENGAGED IN SALE/PURCHASE OF LAND OR BUILDING

Section 43CA -Applicability

                   This provision applies to persons who are engaged in the business of sale/purchase of land or building. In other words, this provision applies to a property dealer for whom land or building forms part of stock-in-trade.


                   If any land or building is sold by the property dealer and the sale consideration is .less than the SDV of such land or building, in such cases the SDV shall be deemed to be the sale consideration. In other words, in case of property dealers, sale price to be credited to P&L A/c shall be higher of the following:


       Stamp Duty Value of land/building; or

       Actual amount for which land/building has been transferred

Special Provision for Agreement to Sell Land/ Building

                   This provision applies in case of agreement to sell land or building.


                   If SDV of land/building as on the date of booking is less than the 5DV of land/building as on the date of registration, the SDV as on the date of booking can be taken provided the booking amount has been received otherwise than in cash.


S.No

Actual Consideration

SDV on the Date of

Booking/Agreement

SDV on the Date of

Registration

Sale Value u/s 43CA

1.

Rs 200 lakhs

Rs 250 lakhs (Booking amount of Rs 50 lakhs received by cheque on

31/7/2017)

Rs 300 lakhs (1/3/2018)

Rs 250 lakhs

2.

Rs 200 lakhs

Rs 250 lakhs (Booking amount of Rs 50 lakhs received in cash on

31/7/2017)

Rs 300 lakhs (1/3/2018)

Rs 300 lakhs

3.

Rs 200 lakhs

Rs 250 lakhs (31/7/2017)

Rs 300 lakhs (Full

amount received on the date of registration)

Rs 300 lakhs




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