In a judgment with substantial implications for belongings proprietors, the Income Tax Appellate Tribunal (ITAT) ruled that ownership of property will be counted from the allotment date of assets.
The ruling affords huge benefits to property owners, who can be planning to promote the property and have been looking for readability concerning lengthy-time period capital profits (LTCG) at the said property.
Long-term capital gains at present clocks in if belonging is sold inside 24 months of the acquisition. Prior to the monetary year 2017-18, one may want to avoid paying lengthy-term capital profits via maintaining belongings for more than 36 months.
According to the expertise till now, the ownership becomes taken into consideration from the date of the registration. Since, often, many residences are registered a lot later than crowning glory of the transaction and possession, it turned into a bone of contention for property owners.
According to the ruling as pronounced by way of the Times of India from now preserving of belongings clearly from the date of registration could be taken into consideration for the cause of computing lengthy-time period capital profits tax, and no longer the date of registration.
Often, owners promote belonging and reinvest the amount as a result accumulated, in some other belongings, after owning it for not less than three years to avoid having to pay any lengthy-term capital gains tax.
The document referred to a case in which someone paid a full-size quantity and were given the letter of allotment for a duplex flat in February 2008, even though the registration agreement was signed best in March 2010. The same belongings were offered in April 2012.
So as consistent with current practice and understanding the Income Tax officials perceived the transaction falling below the category that qualifies fee of long-term capital gains tax. The proprietor, however, contested the order announcing he got the allotment letter tons earlier. The Income Tax Tribunal dominated the assets proprietor could no longer qualify for long-term capital gains-LTCG.
The ruling has extensive implications for lakhs of assets proprietors who may be going through a comparable quandary and could now not want to fall within the tax net.
After giving taxpayers the run around with frequent threats of motion for failing to link the Aadhaar wide variety to the permanent account number (PAN) earlier than 31 March 2019, the Central Board of Direct Taxes (CBDT) has once again prolonged the closing date to 30 September 2019.
However, it’s miles nonetheless mandatory for taxpayers to quote their Aadhaar wide variety at the same time as filing earnings tax returns (ITR), which anyways are required to be filed by the 31st July each yr. One of the primary reasons for the extension of Aadhaar-linking deadline could be the truth that over 20 million PAN-holders have no longer but connected their Aadhaar to PAN — that is a massively wide variety and it’s miles unclear how a lot of them do now not actually have an Aadhaar wide variety. This determine is supplied by the tax department itself on its homepage.
On Sunday, 31 March 2019, which turned into the closing date for the PAN-Aadhaar linkage, the earnings tax (I-T) branch, issued a circular for extending the cut-off date and asking taxpayers to mandatorily quote Aadhaar variety in their ITRs. For normal taxpayers, it’s miles crucial to notice that the required requirement of quoting Aadhaar wide variety of their ITRs to be filed by way of July remains.
As in keeping with the I-T department’s very own statistics, as on 28 February 2019, there have been 83. Five million consumer registered on its e-submitting website.
This additional method, those many human beings own PAN. However, out of this, most effective seventy-one % or fifty nine. Three million customers have connected PAN and Aadhaar, as in step with the statistics from the I-T department. In different phrases, there are nevertheless 24.2 million PAN-holders who have not connected their Aadhaar numbers.
Providing a small remedy for taxpayers who had filed returns without quoting an Aadhaar variety, the CBDT circular says, there’ll no longer be any action and ITRs of such taxpayers could stay processed.
In the round, R Rajarajeswari, underneath secretary (ITA-II) in CBDT, says, “Returns, which have been filed previous to 1 April 2019 without quoting of Aadhaar wide variety as an final results of any selection of different excessive courts in a particular case, or returns, which had been filed during the duration whilst the web capability for submitting the return without quoting of Aadhaar variety become so to be had in the aftermath of decision of Delhi HC on 24 July 2018, until it became withdrawn post selection of constitution bench of the Supreme Court dated 26 September 218, could additionally be taken up for processing without inflicting any detrimental effect for non-quoting of Aadhaar as per provision of phase 139AA of the I-T Act.”