No there is no requirement of audit for such a building/ complex.
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Audit requirement for a housing apartment / condominium
Ours is a residential housing complex (condominium) having 10 family apartments. The condominium is registered in the year 2009. and has no commercial activity. Through a housing fund a sum of Rs. 30 lakhs was collected ( Rs. 3 lakhs per flat) in the year 2010 through cheque and this amount has been kept in fixed Deposit and on the interest earned, the monthly expenses such as the watchman service. electricity bills, maintenance of Lift, CCTV etc are met. The total income of the apartment including the FD interest / SB account interest is less than Rs. 5 Lakhs.in a financial year. The bank deducts TDS and the condominium files the IT returns in Form ITR 5 each year. Refunds are received each year. Is the complex liable to have an audit under section 44 or 44A or 44AB ?
Asked 4 years ago in Income Tax
On a sale of agricultural / residential land (only land - and no building), is there any Capital Gain subjected to the individual tax payer ? The land was purchased in the year 2001 at Rs. 2,25,000/ - and is proposed to be sold in the year 2020 (long term gain) for a sum of Rs. 45,00,000/- (Rs. 45 Lakhs).
Asked 4 years ago
Yes there will be a capital gain of around ₹38 lakh and on that tax would be around 7.6 lakh.
Now many things would depend on whether land is agricultural or residential.
Whether such agricultural land is in rural or urban area?
Whether you have used such agricultural land for agricultural activity?
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Hello,
There is no requirement for Audit under the Income Tax.
I hope that this answer satisfies your requirements.
Regards,
CA Hunny Badlani
There is no Capital Gain on the sale of Rural Agricultural Land.
While on sale of Residential Land/Urban Agricultural Land, Capital Gain would be leviable. Capital Gain, as per the details provided considering it taxable, is approx. Rs. 38.50 Lakhs taxable at flat 20% plus cess.
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No, the complex is not liable to have an audit under section 44 or 44A or 44AB.
If it is a rural agricultural land then there would be no capital gain tax liability.
Agricultural land in Rural Area in India is not considered a capital asset. Therefore any gains from its sale are not taxable under the head Capital Gains.
Otherwise, there would be capital gain of Rs 38 lakhs.
You will be liable to pay the LTCG tax @ 20.8% on Rs. 38 lakhs
Sale of agri land with prescribed condition is exempt from tax other wise taxable.
Capital gain tax would be 38.5 lakhs you need to invest it properly to have tax exemptions
Hi
No. There would be no audit applicable in the above case.
There would be no capital gains of the property being sold is a rural agricultural land.
In all other cases, it would be a long term capital gain chargeable to tax @20%.
The capital gain would be around 38.5 lacs, tax on which would be around 7.7 lacs plus edu cess.
You may claim capital gain exemption by reinvesting the sales proceeds into a residential house property or section 54 EC eligible bonds.
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