Section 50C of the Income Tax Act for computation of capital gains by taking value taken for payment of stamp duty on immovable property has become a bone of contention between Income Tax Department and taxpayers. The Assessing Officers uses this section by extending the meaning of transfer of land or building for the purpose of capital gains . They are not alone, because there is opinion difference between even...
Section 54EC of the Income Tax Act provides exemption provision in case of long term capital gains . The confusion actually in the mind of the tax payer starts when he has to decide how much he/ she has to invest in the specified bonds of section 54EC . The real confusion is about whether the investment should be made of sales consideration of just equivalent to long term capital...
Section 56(2)(vii) is among many exceptions provides under clause (d) that if an individual or HUF receives any sum of money without consideration (read as gift ) in contemplation of death , the receipt will not be taxable. The issue is what is the meaning of phrase "in contemplation of death " which is not explained any where in the Income Tax Act.
Section 155(16)of the Income Tax Act was introduced from Asst Year 2004-05 (F.Y 2003-04 ) . This relates to capital gains on compensation .The reason for bringing such provision was that the land property were being acquired by government or private bodies for major infrastructure development. In that event
Tax Slabs Expanded
New tax labs are as under
Upto 1,60,000 Exempt
Rs 1,60,001 to Rs 5,00,000 10 %
Ra 500001 to Rs 8,00,000 20 %
Over Rs 8,00,000 30%
Therefore , majority of tax payers will get some kind of relief from tax.
Deduction u/s 80D on
No , Rent is not taxable as your income if the transfer of the house was done without receiving the consideration......why? This is beacuse of clubbing provision in the I T Act .Section 64 (vi) of the I T Act states:In computing the total income of any individual, there shall be included all such income