PERMISSION FROM IT DEPT. FOR TRANSFER OR SALE OF ASSETS <ul><li>Presentation by </li></ul><ul><li>Divya Raman </li></ul><u...
ASSET <ul><li>Anything tangible or intangible that is capable of being owned or controlled to produce value and that is he...
TYPES OF ASSETS <ul><li>Fixed Assets. </li></ul><ul><li>Tangible Assets. </li></ul><ul><li>Intangible Assets. </li></ul>
Section 54F of Income Tax Act <ul><li>It states that any capital gains derived out of sale of a long term asset shall not ...
Section 230 A of the Income Tax Act <ul><li>It states that a person selling any immovable property of a value of more than...
Section 230 A contd.. <ul><li>Only when the Assessing Officer gives such a certificate, can the Registering Authority unde...
Section 269 UC of the Income Tax Act <ul><li>This Section imposes certain restrictions on transfer of immovable property. ...
<ul><li>five lakh rupees as may be prescribed, shall be effected except after an agreement for transfer is entered into be...
Section 269UC contd.. <ul><li>The Agreement referred in sub-clause 1 shall be reduced to a statement by each of the partie...
Section 269 UC contd.. <ul><li>If the statement referred above is found to be defective, the appropriate authority may int...
FORM NO. 37-I <ul><li>Statement of agreement for transfer of immovable property to be furnished to the appropriate authori...
FORM NO. 37-I contd. <ul><li>4. Particulars of transferor such address, name of the father or husband, contact number etc....
Digvijay Cement Co. Ltd. vs Appropriate Authority And Ors. on 10 March, 1998 <ul><li>The validity of the order passed by t...
S. Krishnan vs U.V. Shahadadpuri & Ors. on 2 April, 1997 <ul><li>Pre-emptive purchase order passed by the Appropriate Auth...
 
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Permission from it dept for transfer or sale of assets

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Permission from it dept for transfer or sale of assets

  1. 1. PERMISSION FROM IT DEPT. FOR TRANSFER OR SALE OF ASSETS <ul><li>Presentation by </li></ul><ul><li>Divya Raman </li></ul><ul><li>Corporate Department </li></ul><ul><li>Dated 29.10.2011 </li></ul>
  2. 2. ASSET <ul><li>Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset. Simply stated, assets represent ownership of value that can be converted into cash (although cash itself is also considered an asset). </li></ul>
  3. 3. TYPES OF ASSETS <ul><li>Fixed Assets. </li></ul><ul><li>Tangible Assets. </li></ul><ul><li>Intangible Assets. </li></ul>
  4. 4. Section 54F of Income Tax Act <ul><li>It states that any capital gains derived out of sale of a long term asset shall not be charged under income tax if within 3 years subsequent to such sale, the person buys/constructs a residential house of the same value at which the long term asset was sold. </li></ul>
  5. 5. Section 230 A of the Income Tax Act <ul><li>It states that a person selling any immovable property of a value of more than Rs. 5 lakhs, has to get a certificate from the Assessing Officer under the Income Tax Act that such person has satisfactorily paid all existing liabilities under this Act, and certain other Act such as Excess Profits Tax Act, 1940, the Business Profits Tax Act, 1947 etc. </li></ul>
  6. 6. Section 230 A contd.. <ul><li>Only when the Assessing Officer gives such a certificate, can the Registering Authority under the Indian Registration Act register such transfer or sale of immovable property. </li></ul><ul><li>However, this Section has been omitted by the Finance Act, 2001 with effect from 01.06.2001. </li></ul>
  7. 7. Section 269 UC of the Income Tax Act <ul><li>This Section imposes certain restrictions on transfer of immovable property. </li></ul><ul><li>“ (1) Notwithstanding anything contained in the Transfer of Property Act, 1882 (4 of 1882) or in any other law for the time being in force, no transfer of any immovable property in such area and of such value exceeding </li></ul>
  8. 8. <ul><li>five lakh rupees as may be prescribed, shall be effected except after an agreement for transfer is entered into between the person who intends transferring the immovable property (hereinafter referred to as the transferor) and the person to whom it is proposed to be transferred (hereinafter referred to as the transferee) in accordance with the provisions of sub-section (2) at least four months before the intended date of transfer. ” </li></ul><ul><li>  </li></ul>
  9. 9. Section 269UC contd.. <ul><li>The Agreement referred in sub-clause 1 shall be reduced to a statement by each of the parties to such transfer. </li></ul><ul><li>The statement referred above shall be in the prescribed form, setting forth such particulars as may be prescribed and verified in the prescribed manner and shall be furnished to such authority within the prescribed time. </li></ul>
  10. 10. Section 269 UC contd.. <ul><li>If the statement referred above is found to be defective, the appropriate authority may intimate to the parties concerned and the parties shall within 15 days or such extended time as may be allowed rectify such defects. If they fail to do so, the statement shall be deemed never to have been furnished. </li></ul>
  11. 11. FORM NO. 37-I <ul><li>Statement of agreement for transfer of immovable property to be furnished to the appropriate authority under section 269UC of the Income-tax Act, 1961. </li></ul><ul><li>Particulars : </li></ul><ul><li>Name of transferor. </li></ul><ul><li>Name of the transferee. </li></ul><ul><li>Consideration. </li></ul>
  12. 12. FORM NO. 37-I contd. <ul><li>4. Particulars of transferor such address, name of the father or husband, contact number etc. </li></ul><ul><li>5. Particulars of transferee. </li></ul><ul><li>6. Particulars of property sold. </li></ul><ul><li>7. Details of liability in respect of dues to the local authorities. </li></ul><ul><li>8. Both the transferor and transferee has to sign the statement. </li></ul>
  13. 13. Digvijay Cement Co. Ltd. vs Appropriate Authority And Ors. on 10 March, 1998 <ul><li>The validity of the order passed by the appropriate authority under the Income Tax Act was challenged (under Section 269UC) before the Calcutta High Court. </li></ul><ul><li>Allegation: The said order was passed in excess of their jurisdiction. </li></ul><ul><li>Judgment: The appropriate authority has acted fairly and exercised its jurisdiction properly. </li></ul>
  14. 14. S. Krishnan vs U.V. Shahadadpuri & Ors. on 2 April, 1997 <ul><li>Pre-emptive purchase order passed by the Appropriate Authority was quashed by the Bombay High Court stating that the said order was passed without taking into consideration the exact value of the property and the Appropriate Authority has passed the order without application of mind and thus erred in its order. </li></ul>

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