Yes he is liable. Yes the society is also liable to pay tax U/s. 50C.
sir A member of a co-op House Building Society is entiled for allotment of a plot,in the land aquired for the benefit of the members at cost of the site plus lay out & other development expenses incurred. i) Whether the member who is alloted a site in the society layout at cost is liable for deemed income u/s 56(2)VII(b), where the stamp duty value of the site is more than the actual amount paid ? ii)Whether the society is liable for deemed capital gains for the difference in actual consideration received by the society and the stamp duty value u/s 50c r/w sec 48 ?
Hi,
Yes, member is liable for deemed income 56(2)Vii. Society is also liable to pay deemed capital gain tax.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
could please tell us any case laws available to this case sir
Hello Sir,
Yes both the member and the society are liable for taxes in your case.
The member is liable for deemed income and the society is liable for deemed capital gains.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Sir pl mail your query on modani005@gmail.com to give you case laws
i) The proviso to 56(2)(VII)(b) does not cover a co-op. House building society, unless it is registered u/s 12A.
ii) Yes. Section 50C is in respect of all assessees, including co-op societies.