The Union Minister for Finance and Corporate Affairs, Arun Jaitley proposed that no adjustment shall be made in a case where the circle rate value does not exceed 5% of the consideration. While presenting the General Budget 2018-19 in Parliament here today.
“Currently, while taxing income from capital gains, business profits and other sources in respect of transactions in immovable property, the consideration or circle rate value, whichever is higher, is adopted and the difference is counted as income both in the hands of the purchaser and seller. Sometimes, this variation can occur in respect of different properties in the same area because of a variety of factors including shape of the plot and location.” He said.
Thus in order to minimise hardship in real estate transaction, the Finance Minister proposed to provide that no adjustment shall be made in a case where the circle rate value does not exceed 5% of the consideration.