Section 50C & 50CA of the Income Tax Act

Section 50C

Section 50C & 50CA of the Income Tax Act Section 50C-Special Provision for Full Value of Consideration in Certain Cases With effect from A.Y. 2003-2004; section 50C has been inserted in the Income Tax Act, 1961; dealing specifically with gross consideration in the computation of capital gains in respect of transactions in land or building or both. 1) U/S 50C, where the consideration earned or accruing due to the transfer by the assessee of a capital asset; being land or building or both, is less than the value assessed or…

Read More

Section 55A-Reference to Valuation Officer

Section 55A

Section 55A has provided the circumstances in which and the purposes for which; the tax authorities can refer the Valuation Officer for valuation of the capital asset. Section 55A-Reference to Valuation Officer As per section 55A of the Income Tax Act, intending to ascertain the fair market value of the capital asset; the assessing officer may refer the valuation of a capital asset to a valuation officer. The circumstances in which the assessing officer can refer to the valuation officer are as follows: a) In the case, where the value…

Read More

Section 144 & 144A-Best Judgment Assessment


Section 144 of the Income Tax Act covers the provisions relating to the “Best Judgment Assessment”. Here, an assessing officer makes an evaluation based on his best reasoning. Section 144-Best Judgment Assessment As per this section, if any person; fails to file the return as required U/S 139(1); or a belated return U/S 139(4) or a revised return U/S 139(5); or fails to comply with all the terms of a notice issued U/S 142(1) or; fails to comply with the direction issued U/S 142(2A); or after filing a return, fails…

Read More

Section 195 of Indian Income Tax Act

Section 195 is related to the deduction of TDS on any payment made to non-resident. As per this section, if any person is responsible for any payment to any non-resident (not being a company) or to a foreign company by way of interest or any other sum chargeable under the provisions of income tax excluding salary, he is liable to deduct TDS at the rates in force. Section 195 of Indian Income Tax Act However, in case of interest payable by the government or public sector bank or a public…

Read More

Section 139 B, 139C & 139D of Income Tax Act

For the purpose of enabling any specified class or classes of persons in preparing & furnishing returns of income, the Board may, without prejudice to the provisions of section 139, frame a scheme, by notification in the Official Gazette, providing that such persons may provide their returns of income through a Tax Return Preparer approved to act as such under the Scheme. Section 139B-Submission of Returns through Tax Return Preparers Every Tax Return Preparer shall assist the persons furnishing the return of income in such a manner as may be…

Read More