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

RERA Awards Rs. 65 Lakhs Compensation to Homebuyer for 9 Years Delay in Flat Possession

  CA Ramesh Agrawal In a recent decision, the Haryana Real Estate Regulatory Authority (HRERA) has directed a builder to compensate a homebuyer with ₹65 lakh for an inordinate delay of over nine years in handing over a flat in Gurugram. Key Highlights: Background of the Case : The homebuyer had booked a flat in 2013, with the developer promising possession within a stipulated timeframe i.e., 7 th December 2015. However, the possession was delayed by more than nine years. Developer's Justifications : The builder attributed the delay to unforeseen circumstances, including the COVID-19 pandemic, the demise of the chairman of environmental impact assessment (EIA) committee, and inadequate water supply. H-RERA's Verdict : After reviewing the case, HRERA rejected the developer's justifications, deeming them insufficient to warrant such a prolonged delay. The authority emphasized that the reasons cited did not qualify as fo...
Post a Comment
Read more

Supreme Court Ruling Warns Homebuyers: Registration Is Not Ownership

CA Ramesh Agrawal The Supreme Court in a significant ruling has stated that only registering a property does not make someone its legal owner. The judgement, delivered in the Mahnoor Fatima Imran vs M/s Visweswara Infrastructure Private Limited case, has direct implications for millions of Indian homebuyers and investors. If someone has bought a property solely based on a registered sale deed, then have a look at the below points.   Understanding the Law: Registration Does Not Equal Ownership “Ownership of a property comprises several aspects, of which registration is only one,” says Mr. Harsh Parikh, partner at a Law Firm, Khaitan & Co. Under Indian law, properties above Rs. 100 require registration, but that’s not all. “A buyer must also prove full payment, possession, and custody of original title documents,” he explains. Chairman and Director of Prime Developments, Mr. Rakesh Malhotra stated that “Registration provides prima facie evidence of a transaction, but it doesn’t c...
Post a Comment
Read more

Municipality Demolishes Illegal & Unsafe Structures

  CA Ramesh Agrawal The Sambhajinagar Municipal Corporation (CSMC) has started an anti-encroachment campaign, to keep the city clean, safer, free up public space, etc. Details of the same are mentioned as below: - Drive Moves To Gulmandi Area: - After cleaning up areas like Beed Bypass and Mukundwadi, now the clean campaign has moved to Gulmandi area, which is busy & crowded market zone. The move shows that the Authorities are serious for removing illegal building all across the city. Illegal Constructions & extension demolished: - The Authorities have targeted illegal buildings & extension of around 25 Shops in bustling Rangar Galli Market & its surrounding areas. During the operation demolition of a run-down building was carried out with the presence of police. Ongoing Efforts : - Additional Municipal Commissioner, Mr. Santosh Wahule explained that this campaign in Gulmandi was carried out on the instructions of the Civic Chief G. Sreekanth. This clean campaign ...
Post a Comment
Read more