• Co-op House Building Society

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 ?
Asked 6 years ago in Income Tax

Yes he is liable. Yes the society is also liable to pay tax U/s. 50C.

Shyam Sunder Modani
CA, Hyderabad
1408 Answers
164 Consultations

5.0 on 5.0

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

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

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

Rohit R Sharma
CA, Mumbai
2104 Answers
95 Consultations

5.0 on 5.0

Sir pl mail your query on modani005@gmail.com to give you case laws

Shyam Sunder Modani
CA, Hyderabad
1408 Answers
164 Consultations

5.0 on 5.0

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.

B Vijaya Kumar
CA, Hyderabad
1001 Answers
124 Consultations

5.0 on 5.0

Hi

Yes the member as well the society will be liable for tax.

Regards,

Keerthiga Padmanabhan

M.Com., CA, LLB

Keerthiga Padmanabhan
CA, Greater Mumbai
784 Answers
27 Consultations

5.0 on 5.0

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