Skip to main content

Income Tax Exemption To Owners Of Unauthorized Colonies In Delhi

                                                                                                    CA Ramesh Agrawal

Over 1700 unauthorized colonies in Delhi were regularised in December last year. Owners Delhi’s unauthorised colonies will now get Income Tax Exemption even if they have purchased land or house at rates below the prevailing market price.

 

The Income Tax Department issued a Notification grating the exemption on any immovable property being land or building, purchased by a resident of unauthorised colony in Delhi NCR and the Central Government has regularised the transactions in favour of resident of such immovable property based on the documents such as latest Power of Attorney, Agreement to Sale, Will, Possession & other documents  if any.

 

The notification is effective from April 1, 2020 and would be applicable for Assessment Year 2020-21 and subsequent years. The Notification dated June 29 exempts the owners of these properties from payment of Income Tax on the differential of Fair Market Value (FMV) and the purchase price. Currently, If the property has been purchased at a lower price than the prevailing circle rate then, the Income Tax is leviable on differential of FMV and the actual purchase price.

 

All acquisitions before that date of regularisation have been Tax exempted by way of a notification, so that residents don't have to pay Tax on any notional income, even if FMV as on date of regularisation is more than the purchase price of such property.

 

Labels:

Comments

Post a Comment

Popular posts from this blog

DEMOLITION OF ILLEGAL FARMHOUSES IN ARAVALLI AREA IN GURUGRAM

CA. Ramesh Agrawal The Duty Magistrate has been appointed to demolish all the illegal farmhouses on Aravalli forest hills will start soon. On the report of Forest Department, approximately 100 illegal farmhouses were built on the Aravalli forest area in Gurugram district, mostly in  Gwalpahari and Garatpur Bas villages and areas of Sohna and Manesar and these farmhouses were built in around 50 acres of land without any prior permission from the concerned authority. Nearly all illegal farmhouses are allegedly possessed by retired bureaucrats and politicians. As per the order of the National Green Tribunal demolition of the illegal farmhouses on forest land in the Aravalli region in Gurugram district by January 31. In a survey, the Forest department found approximately 100 illegal farmhouses were built in the Aravalli hills while the cases 10 farmhouses owner are pending in the Court. Requisition was made by the forest department to the District Administration for the appointment of duty
2 comments
Read more

RERA takes over the project of the Builder to Complete

Ramesh Agrawal (LL.B. & CA) Chhattisgarh’s Real Estate Regulatory Authority (RERA) has passed an order to hand over the private project i.e., City of Valencia located in “Narada” of Chhattisgarh district to Chhattisgarh Housing Board. This action is to safeguard the interest of plot allotees. Action was taken up against builder Aftab Siddiqui who was reluctant to develop the project & provide even the basic necessities such as Water, Electricity, Sewer, Road, etc. as mentioned in the brochure. Builder prepared a housing project in Narada in 2010 of 1072 plots. Because of the attractive brochure and other unfair means he was able to sell 691 plots and collected over Rs 41 Crores from the public. Instead of developing the project, the builder siphoned off the funds. Project was supposed to be finished by 2015, no development work commenced even after 6 years. Chhattisgarh’s RERA President Mr. Vivek Dhand said that 130 allottees of the project ‘City of Valencia’ located in Narada,
Post a Comment
Read more