Section 43CA and Section 50C are two provisions under the Indian Income Tax Act that deal with the valuation of property transactions. While both provisions are aimed at preventing tax evasion and improving transparency, there are some differences between them. Before explaining
what is difference between 43CA and 50C, let me share what they mean or state in detail here.
Now sell your property online without any brokerage on NoBroker What does Section 43CA state?Section 43CA applies to the sale of immovable property, including land, buildings, and other assets, by a taxpayer who is a real estate developer or a builder. Under this provision, if the actual sale consideration received by the taxpayer is less than the value adopted or assessed by the stamp valuation authority, then the value adopted or assessed by the stamp valuation authority will be deemed to be the sale consideration for computing the profits and gains from such a transaction.
What does Section 50C state?Section 50C applies to the transfer of land, buildings, or both that are not capital assets of the taxpayer's business. Under this provision, if the consideration received or accruing as a result of the transfer of a capital asset is less than the value adopted or assessed by the stamp valuation authority, then the value adopted or assessed by the stamp valuation authority will be deemed to be the full value of consideration for computing the capital gains arising from such a transfer.
What are the differences between these two sections?There are two major differences between Section 43CA and Section 50C and they are-
| Section 43CA | Section 50C |
Section 43CA applies to the sale of immovable property by a developer |
Section 50C applies to the sale of immovable property by any seller |
Section 43CA requires the developer to compute the income tax based on the higher of the sale consideration or the stamp duty value of the property |
Section 50C requires the seller to consider the stamp duty value of the property as the full value of consideration for computing income tax |
Section 43CA does not apply if the transfer of immovable property by a developer is at a value less than the stamp duty value |
Section 50C applies even if the sale consideration is lower than the stamp duty value |
These points should be enough to help you know
what is difference between 43CA and 50C.
Read More:What is the TDS on sale of property in case of joint sellers?
What documents are needed to check while buying a resale property?
What happens when someone dies before completing an agreement to sale an immovable property?
Your Feedback Matters! How was this Answer?
Authors Of The Question
What is Difference Between 43CA and 50C?
Dharmesh
979 Views
1
1 Year
2023-04-21T09:55:18+00:00 2023-04-24T10:07:44+00:00Comment
Share