Topics

1.   In the context of entering into JDA if we are unable to determine the exact / approximate amount of 'Revenue' to be received vide JDA can it be said that consideration is "not ascertainable or cannot be determined"? Further will the consideration still be "not ascertainable or cannot be determined" in case of JDA's having conditions such as
(i)   Cancellation of JDA due to non-performance / Short-performance of Developer
(ii)   Substitution of Revenue to Area sharing Model, and / or Substitution of Area sharing Model to Revenue Model, due to failure to sell flats by Builder after construction or any other reason, irrespective of the fact that the estimated built-up area / amount to be received from the project is derivable due to future events like plan sanction, Launch price, any other reason etc and not @ time of entering into of JDA

2.   Will the provisions of this section survive  (i.e. can it be said that consideration is not determinate / not ascertainable) on account of the following future event(s), which may / may not take place in the year in which JDA is entered into
(a)   Getting Approved Plan sanction
(b)   Getting Modified Plan sanction
(c)   Getting Final Plan sanction
(d)   Fixing of prices for each unit of apartment
(e)   Built-up area is ready
(f)   Agreement is entered into with flat-owners
(g)   Actual amount is received
(h)   Final conveyance is made in favour of flat owners

3.   How will the Fair Market Value of the asset to be transferred be derived under the act, on the date of entering into JDA?

4.   What are the implications under the act if the amount actually accruing / to be received on a future date is not equal to the Fair market value of land transferred, considering the following cases

(i)   Actual consideration received / accruing as the result of transfer is lesser than the FMV of asset transferred / asset received

(ii)   Actual consideration received / accruing as the result of transfer is greater than the FMV of asset transferred / asset received

In case (i) can the assessees challenge such difference and pay tax only on the actual amount received or accrued. Ignoring the fiction created by law deeming FMV as consideration accrued or receiving as a result of transfer. If so under which provisions. i.e. Defeating the very purpose of the section

In case (ii) can the Department challenge such difference and levy tax only on the actual amount received or accrued. Ignoring the fiction created by law deeming FMV as consideration accrued or receiving as a result of transfer. If so under which provisions. i.e. Defeating the very purpose of the section

Is this position the same under the following provisions. If so considering (i) and (ii), what is the current status in light of following provisions
•   4th Proviso to Sec. 48
•   Section 45(1A)
•   Section 45(2)
•   Section 45(3)
•   Section 45(4)
•   Section 46(2)

5.   What will be the position, if any retrospective / clarificatory amendments / explanations are being made incorporating cases (i) and / or (ii) referred to in 4?

Following are facts

1. LAND - BUSINESS ASSET (STOCK-IN-TRADE) 01.04.13
2. JDA ENTERED & POSSESSION GIVEN - 30.06.13
3. ACTUAL SALE OF FLATS (BUILT-UP AREA + UNDIVIDED SHARE IN LAND) - 2015-16

Queires:-

Business Income would be computed upon:
1. Does entering JDA, giving possession and all rights to builder result in accrual / reciept of Income under the IT, act
2. Or actual sale of Built-up area recieved / share of sales as agreed in JDA

Whether Accounting standard will be applicable or General law under Transfer of property act  - (Sec.53 A) will apply

Dear all,
Whether interest payment on bank loan will be eligible for exemption in the following example, assuming Section 54 case and not 54F:

Longterm capital gain:- 20 lakhs
House construction cost :-18 lakhs
Interest paid on housing loan upto date of filing return of Income:- 1.5 laks

Would the exemption u/s 54 be equal to
View 1 - 18 lakhs
View 2 - 18 + 1.5 = 19.5 lakhs
View 3 - 18 (+ 1.5 = 19.5 lakhs - 54 exemption and / or deduction u/s24 for housing loan interest)

Scenario 1 - A person introduces his land as capital contribution to the firm, can the amount payable towards such capital be claimed as 'debt owed' by the firm for wealth tax purposes...

Scenario 2 - Or is it possible to transfer land to the firm not as capital contribution, and hence can the amount payable be regarded as debtowed by the firm for wealth tax purposes

Would Exemption u/s 54 / 54F be available w.r.t the following amounts prior to Transfer of Eligible capital Asset(s), (assuming all other conditions  like completion of construction within 3 years etc have been fulfilled)

1. Cost of Land - (i) with one year before transfer (ii) prior to one year before transfer

2. Construction expenses incurred (i) with one year before transfer (ii) prior to one year before transfer

Further, would the exemption be available in cases where, the above expenses were incurred prior to transfer out of borrowed funds [ (i) with one year before transfer (ii) prior to one year before transfer], and consideration on transfer / other amounts are used to repay such loan(s) - Would this amount utilisation of amount(s) for the purpose of construction of House

Dear all,
             Wanted your views regarding availability of Exemption u/s 10(38) upon transfer of Share warrants

Thanks in advance

Does INSTRUCTION NO. 8/2010 [F.NO. 275/73/2009-IT(B)], DATED 8-12-2010 have any effect on the dis-allowances that would be made u/s 40(a) of the Income tax act.

['as an employer']

Will the word 'as an employer' used in explaination include cases where amts have been recieved by employer from employee's of contactee's because as per PF act etc.. Employer/e is liable w.r.t PF for contactors employee's also..

Or will expression 'from any of his employee's' used in 36 (1) (va) include such employee's of contractors ??? ???

Dear sirs,
              The facts are as follows:
                                                 A company (Assesse) gives advances to its employee's in modes other than those specified (i.e cash, etc.)who incur various expenses on behalf of the company, upon incurring of expenses a journal is passed

                                                  Expense A/c.. dr
                                                      To Advance A/c

My doubt is whether dis-allowance is applicable or not, If applicable, whether its applicable when.,
            1. Payment exceeding 20000 is made by company to employee. or

            2. Passing of journal exceeding Rs.20000 when exp is incurred. or

            3. Employee makes payment exceeding 20000 to third party.

Pls Clarify..

Thanks in advance for your efforts