The Finance bill, 2016, became exceeded within the Lok Sabha on 5 can also and in the Rajya Sabha oneleven may additionally. once the invoice will become an Act, there are numerous amendments in it that will get implemented from 1 June 2016. however, there are some to be able to simplest get carried outby using 1 April 2017. as an instance, the modification in section 50C of the income-tax Act, 1961, whichdeals with computation of capital gains, will become powerful next yr. one of the amendments under thesame segment is regarding the stamp obligation cost of a belongings now being primarily based at thedate of agreement; presently it is calculated based at the date of transfer.
what’s phase 50C?
section 50C of the income-tax Act in particular offers with the gross cost that have to be taken into consideration for the computation of capital gains in case of transfer of land or constructing. It comes intoforce while there may be a distinction among the sale cost said via the seller and fee of the propertyassessed by the stamp obligation authority. So, if the cost said within the instrument of transfer is much less than the valuation assessed or assessable with the aid of the stamp duty authorities, the latter valuation can be considered to compute capital profits.
for example, in case you promote a belongings for Rs.70 lakh, however in step with the government, the belongings is worth Rs.seventy five lakh, then the sale price of the property will be taken into consideration to be Rs.seventy five lakh. in addition to this, the capital gain arising from the sale might be computed on the premise of Rs.seventy five lakh.
WHAT ARE THE adjustments?
it has been proposed to amend the guidelines in instances where the date of settlement to sell and date of switch (registration of property in the name of the brand new purchaser) are special.
In such cases, the fee assessed via the stamp responsibility authority at the date of agreement may betaken into consideration to compute the entire price for the switch of property.
for example, in case you input into an agreement to sell a assets in June 2017 but the actual transfer by way of manner of registration take places best in December 2017, in this type of case, the stampobligation authority will ought to fee the assets as on June 2017, in place of December 2017.
terms AND conditions
The guidelines only practice whilst the amount of attention, or a part of it, has been obtained throughthe transferee or the vendor of the assets on or before the date of settlement. it’s also necessary that thecash have to be received via way of an account payee cheque, account payee financial institution draft, or by using an electronic clearing device (ECS) mandate. price in cash will now not be taken into consideration.