WHAT ARE THE CHANGES? It was suggested that the rules should be amended in cases where the date of the contract of sale and the date of transfer (registration of immovable property on behalf of the new buyer) were different. Laws relating to the registration of real estate transactions in India. The Bombay High Court ruled in the decision of 29 October 2018 that the income tax tribunal`s finding was correct and that the sale/transfer of the property in question had only been completed in the 2011-2012 financial year. The court also found that the court was right to conclude that the agreement reached on February 14, 2011 was an agreement on the sale of real estate. The law in force at the time required the registration of such an agreement. In any event, by the mere fact that it is registered, it does not automatically assume the character of a deed of assignment or a deed of sale. The 2016 Finance Law was passed on 5 May at the Lok Sabha and on 11 May at the Rajya Sabha. Once the bill becomes law, various changes will be implemented starting June 1, 2016. However, some will not be implemented until April 1, 2017. For example, the amendment to section 50C of the Income Tax Act, 1961, which deals with the calculation of capital gains, will come into force next year. One of the amendments to the same section concerns the value of stamp duty on property, which is now based on the date of the agreement; currently, it is calculated based on the date of transfer.
A purchase contract is a promise in the future that ownership will be transferred to the rightful owner, while the deed of sale is the actual transfer of ownership to the buyer. WHAT IS SECTION 50C? Section 50C of the Income Tax Act deals specifically with gross value, which should be taken into account in calculating capital gains in the event of a transfer of land or buildings. It comes into force when there is a difference between the sale value declared by the seller and the value of the property determined by the Stamp Duty Authority. Thus, if the value indicated in the notice of disposal is lower than the valuation assessed or appraised by the stamp duty authorities, the latter valuation is used to calculate the capital gains. A purchase contract is a contract for the sale of a property in the future. .