TALE of TWIN INDEXATION TABLES - contd. -Today's Instalment
?Subj. COMPUTATION Of LTCG on TRANSFER (SALE) Of
??????????????????????LAND and /or BUILDING
?????(Inherited Or Otherwise Acquired and Held)
Material Changes in FORM 2 for AYs 2022-23 and 2023-24
In continuation of the earlier Posts, -
As SAID before:
II. In this and other like instances anyone having vested interests and concerns,- including professionals, invariably look for clues and guidance , apart from caselaw, -
a)????????????the EXPLANATORY MEMORANDUM and NOTES ON CLAUSES issued by the Ministry;
Aside: It has been briefly explained why professionals, so also taxpayers, with vested interests alike, have not been enabled and not been provided with any such clues or guidance, as honestly expected of , nay warranted!
Now, reverting to, -
b)???????????“the so styled - Income tax Ready Reckoners -particularly ILLUSTRATIONS provided therein,
do not, likewise, provide any clues or guidance to be of any help!?
To Dilate:
In a popular IT READY RECKONER (RR)- for FYE 2021-22, - ??having a large circulation, - a gist of the ILLUSTRATIONS given is as under:
?
Capital Asset????????????????????????????????????????????Land
Year ?of acquisition ?????????????????????????????????1990-91
Cost price ????????????????????????????????????????????????1,00,000
FMV as on ???????????????????????????????????????????????7,00,000
Year of sale??????????????????????????????????????????????2020-21
Sale price?????????????????????????????????????????????? 25,00,000
Indexed cost of acquisition (+exp.)?? 21,27,000
Taxable LTCG??????????????????????????????????????? 3,73,000?????????????????????????????????????????????????
?
700000 x fmv as on 1-4-2001
301/100 CII YEAR 2000-21
To Focus (yet again): That in Form 2 , for and upto 2020-21 , the amount of “Indexed cost of acquisition” was to be filled -in. Now,for 2022-23 and 2023 -24, in the changed Form 2 “Cost of acquisition” and “Cost of acquisition with Indexation ” are to be separately filled-in. It is thus the wanting in clarity obtaining for long- 1981 to 2021 stands clarified-YES or no ?!?
?
In the same popular RR, for 2023-24, ILLUSTRATION is given on the manner of computation of LTCG ON SALE OF LAND ACQUIRED BEFORE?1-4-2001, for assessment year 2023-24, a gist of which is as under:
Capital Asset????????????????????????????????????????????Land
Year of acquisition????????????????????????????????1994-95
Cost price????????????????????????????????????????????????10,000
FMV as on 1-4-2001
(+ cost of improvement in 2001-02)? 9,00,000
Year of sale????????????????????????????????????????????2022-23
Sale price??????????????????????????????????????????????31,00,000
Indexed cost of acquisition ??????????????? 29,79,000
(9,00,000 x 331/100)
?Taxable LTCG????????????????????????????????????????1,21,000
Take Away: Going by one’s own understanding, and by necessary inference, the academically qualified author , regrettably, seems to have failed to take, like many others, a conscious note of the implications of the material changes in Form 2 for AYs 2022-23 and 2023-24.
KEY Note: Not so far succeded in the sincere attempts made to ascertain what the other RRs, such as the one published by TAXMANN, have done.
It might be worthwhile to so ascertain ; for, that should help in making an appraisal of the LOSS caused to the REVENUE b’cause of the failure to intelligently identify/spot and insightfully recognise the fallacy / the lacuna in the law, left unclarified for quite long – over 2 decades as of now !?!?
retired professional at none
1 年In a last Attempt to DRIVE HOME the LAST NAIL on> https://www.facebook.com/swaminathanv3/posts/pfbid0NKcxSE8KfkpT9v48Ux8xHgAAB8VaG3wDKK9jBrELbqtLTQLQUDKCDDoRdKZiYRUpl
retired professional at none
1 年^ "Pending, as yet, display of my posted comment, # look up my series of POSTS on FACEBOOK and Linkedin dealing with the still kept alive controversy, impudently so, even by high profile professionals in-practice ! The viewpoints shared therein pertain to the changes made in FORM 2, requiring a separate disclosure of, - 'cost of acquisition ' ('coa') and 'coa' "with Indexation".; instead of ,- only "INDEXED cost of acquistion " as earlier !?!" ^ #Lo! Never Displayed so far !?- May be that contained some critical but positive reaction over the reality that even tax experts , in field practice, have failed to identify the significantly material changes as indicated above; moreover , seemngly lacking in courage of conviction, have stooped to disclaim that "Views expressed are personal" !?
retired professional at none
1 年ITR filing: Three changes in income tax return forms for FY 2022-23 (AY2023-24) - The Economic Times (indiatimes.com) https://economictimes.indiatimes.com/wealth/tax/itr-filing-three-changes-in-income-tax-return-forms-for-fy-2022-23-ay2023-24/articleshow/101326508.cms (Surabhi Marwah, Partner - People Advisory Services practice and Co-leader - Private Client Services, EY India. Shashanka R Buduguntae, Senior Tax Professional, EY India has also contributed to the article. Views expressed are personal.) (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.) see posted comments/replies to..:
retired professional at none
1 年^> So DONE > https://www.dhirubhai.net/pulse/tell-tale-swaminathan-venkataraman/
retired professional at none
1 年Intend to cover /focus on , in the forthcoming Instalment -FEEDinput highlighting the fact/reality of LIFE , - as to how and why the age-old belief - HONESTY PayS, happens to being increasingly discounted/devalued , b'cause of ....Bla, Bla, Bla ....!?! ?? Anyone else with related thoughts and experience-based INFO.; to share with no FEAR or FAVOUR!