As part of the AatmaNirbhar Bharat Package 3.0 as announced by Hon’ble Finance Minister on 12th November, 2020, certain income tax relief measures were brought in for real-estate developers and home buyers.
- the sale consideration shall be deemed as 1.20 crore under 43CA for the developer.
- The difference between circle rate minus sale consideration i.e 20 lakh will be treated as income from other sources for the Ram
But after this amendment, the deeming income limit has been enhanced from 10% to 20% and in after amendment, consideration will remain 1 crore for both buyer and seller.
This benefit will be available only
- For the primary sale of residential units, for Second-hand sale older limit shall be applicable.
- The residential unit value must be up to 2 core.
- Enhanced Limit shall applicable for a period 12.11.2020 to 30.06.2021.
also see this video on Old Provision of 50C