AMIT BAJAJ ADVOCATE

Section 54EC provides for exemption from tax on long-term capital gain when the capital gain arises from the transfer of long-term capital asset and the whole or any part of the said capital gain is invested in certain bonds within the period of 6 months. Section 54EC speaks of the actual capital gain which arises out of transfer of long-term capital asset and not deeming amount. Whereas section 50C provides for deeming fiction where value of consideration is adopted as per the stamp valuation authorities or any authority of the State Government. Even if the property has been sold at a lesserprice but under the deeming fiction of section 50C, the value adopted by the stamp valuation authorities is to be taken as sale consideration. Such a deeming fiction cannot be imported into section 54EC. Hence, the deemed value cannot be considered for the purpose of exemption under section 54EC. Thus, for the purpose of deduction under section 54EC, the sale value would be taken at Rs. 16 lakhs, which is the actual sale consideration and has been invested in the bond. At the same time, for the working of the long-term capital gain, the sale consideration will be taken up as per the value determined under section 50C, which is at Rs. 24.48. Thus, the sale value for the purpose of computation of long-term capital gain would be taken at Rs. 24.48 lakhs.

PRESS RELEASE

Subject: Relaxation from compulsory e-filing of return of income for assessment year 2012-13 – for representative assesses of non-residents and in the case of private discretionary trusts -reg

Rule 12 of the Income-tax Rules, 1962 mandates that an individual or Hindu undivided family, if his or its total income or the total income in respect of which he is or it is assessable under the Act, during the previous year, exceeds ten lakh rupees, shall furnish the return electronically for the assessment year 2012-13 and subsequent assessment years.

Order under Section 119 of the Income Tax Act, 1961

order [f.no. 225/163/2012/ita-ii], dated 31-7-2012

On consideration of the reports of disturbance of general life caused due to failure of power and further in consideration of the fact that the e-filing of returns for a specified category of individuals and HUF has been made mandatory, the Central Board of Direct Taxes, in exercise of powers conferred under section 119 of the Income Tax Act, 1961, hereby extends the 'due date' of filing of returns of income for the Assessment Year 2012-13 to 31st August 2012 in respect of assessees who are liable to file such returns by 31st July 2012 as per provisions of section 139 of Income Tax Act, 1961.