TMI BlogApplicability of Section 50C of Income Tax Act 1961X X X X Extracts X X X X X X X X Extracts X X X X ..... As assessee has entered into an agreement to sell his agricultural land to a builder in FY 2011-12. Immediately, after agreement to sell, the builder applied for CLU (conversion for land use) and the land was approved for conversion into residential property. Now, at the time of registration of land, the Revenue authorities are insisting for registration of land as per applicable circle rates fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r residential property instead of agricultural land. Therefore, the builder will get the land registered as per circle rates applicable for residential property, but actual consideration is being paid as per rate decided for agricultural land. My query is whether in the hands of assessee, for the purpose of computation of capital gain, whether provision of Section 50C (Special Provision for fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll value of consideration in certain cases) will be applicable or not. - Reply By CA GOPALJI AGRAWAL - The Reply = You have to ensure whether the agreement was in writing, registered and what is the time gap between the two events. If the facts are in favor, the it might hold good in test of appeal. Of course, the AO can take the stand of Section 50C . - Applicability of Section 50C of Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Act 1961 - Query Started By: - BSNL PUNJAB TELECOM CIRCLE Dated:- 30-10-2012 Income Tax - Got 1 Reply - Income Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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