Section 43CA: Stamp Duty Valuation on Sale of Flats or Lands Held as Stock –in-Trade : What Every Builder Need to Know About !

Assessment year 2014-15 maybe quite bothersome from builders and real estate traders as till 31/03/2013, they were not bothered about the stamp duty valuation of the sold flats. Only investors who were showing it as investment were suffering from the provision of section 50C under which the stamp duty valuation was being taken as deemed consideration. But, from assessment year 2014-15 , the provision u/s 43CA has been introduced which now covers transfer of land or buildings held as stock in trade. Readers should note, almost identical provision u/s 56(2)(vii)(b) under which an Individual or HUF who buys property are required to pay the tax on difference of stamp duty valuation and actual price paid .Readers can read the article CASS Scrutiny for Property Buying ? Know These 6 Most Important Laws Affecting Your Case . This post is going to simplify our understanding of all the taxation isues arising out of the provision of section   43CA of the Income Tax Act which applies in case of land and building transfer out o stock-in-trade

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