The tax authorities consider that this is the time u/s 45 (1) at which the lessor should pay capital gains tax, contrary to the fact that the lessor did not receive any consideration on that date. On the other hand, actual revenues or counterparties do not begin to be generated until after the development or development of the property. Acquisition cost to determine capital gains from the subsequent sale of the share of the developed property – Total value of consideration according to sec.45 (5A) – 11000000/- for the other 3 dwellings. In accordance with the provisions of section 45 of the Income Tax Act 1961, an individual is required to realize capital gains in the year in which the transfer is made, regardless of the consideration for the sale. However, a new amendment, Article 45 (5A), is introduced by the Finance Act 2017, with effect on 01.04.2018, which greatly facilitates individuals / HUFs. As a result of this amendment, persons/HUF who enter into a joint development agreement with the owner are required to make capital gains during the year in which the closing deed is issued by the competent authority. As a result, the tax debt is carried forward from the year of the transfer to the year of construction. Nevertheless, there are several practical issues relating to the tax year and the application of other provisions, such as Section 54, paragraph 54, etc., which are discussed in this article. This amount of rs.1833333/- is taxable under the head Capital Gains (long-term) for the P.Y 2018-19. 8.Therefore, in the case of common development agreements, for the harmonious interpretation of Section 45, paragraphs 5A, 54 and 54F, capital gains resulting from the transfer of real estate or real estate, or both, should be taxed in the year in which the lessor realizes the dissimilarity of home sales, and the capital gains tax obligation should be limited to units sold during this year. Taxation of gbA until 31.03.2017 Capital gains are taxable under Section 45 of the Income Tax Act 1961. Under Section 45 of the Act, capital gains in the year in which the transfer is made are, except in some cases, decoud.
Under Section 2.47, the term “transfer” includes, among other things, “any transaction in which the ownership of a property may be acquired or partially enforced under a contract of the case within the meaning of Section 53A of the Transfer of Ownership Act of 1882 (4 of 1882),” even if the right was not transferred. In accordance with this amendment, the landlord`s responsibility to pay the lessor`s tax to pay capital gains taxes is deferred to the year in which the construction is completed and the certificate of completion is requested by the competent authority. We will understand, the determination of income tax in both cases concept according to the other concept of transfer of tax eligibility of capital income is introduced by this section in order to minimize the true harshness that owners of land or buildings face the payment of capital gains in the transfer year.