Dividend Earned from MFs is Exempt from Tax

I plan to sell my property in Vadodara which is currently quoting about 40% below the circle rate. Can I request the IT assessing officer to conduct valuation before I sell the property? And, will the AO consider the valuation if I get the property valued by a government approved valuer? — ARUNKUMAR JOSHI

As per Section 50C of the I-T Act, 1961, if a capital asset, being land or building or both, is transferred for a consideration below the stamp duty value, then such stamp duty value shall be the deemed value of the sales consideration for the purpose of calculating capital gain. However, the assessee can make a claim before the assessing officer during the assessment proceeding that the stamp duty value assessed by stamp value authority exceeds the fair market value of the property and such stamp duty value has not been disputed in any appeal or revision before any authority or court. In such case, the assessing officer may refer the case to the valuation officer of the department. If the value assessed by the valuation officer is lower than the stamp duty value, then such value shall be considered as the deemed sale consideration. In your case, you also can opt the above option prescribed u/s 50C(2) of the I-T Act, 1961.

I have investments in UTI’s Master shares on which I earned a dividend of ₹14 lakh for 2018-19. Am I required to pay 10% tax on the dividend because it exceeds ₹10 lakh?— VIJAYPRAKASH MALPANI

UTI Master Share Unit Scheme is a large-cap mutual fund, which have investments in various equity shares and units of mutual funds. As per Section 115BBDA of the I-T Act, 1961, dividend income distributed or paid by companies is subject to tax in excess of ₹10 lakh. This does not include dividend distributed by mutual funds. Dividend income earned from investment in units of mutual fund is still exempt u/s 10(35) of the I-T Act. Hence, dividend of ₹14 lakh earned by you will be exempt from tax.

Source – TheEconomicTimes