Production of a certificate under section 230A of the Income-tax Act, 1961. - Income Tax - 940/CBDT

INSTRUCTION NO. 940/CBDT Dated : March 22, 1976 Section(s) Referred: 230A Statute: Income - Tax Act, 1961 A clarification has been sought on the point whether production of a certificate under section 230A of the Income-tax Act, 1961 is necessary for registration of conveyance of individual ownership flats valued at less than Rs. 50,000 each owned by a person in a multistoried building, in as much as the total value of the property in the ownership of the vendor consisting of all the flats taken together would exceed Rs. 50,000 , though the value of the interest of the property transferred by each deed is below Rs. 50,000. A point has also been raised whether in cases where the value of the entire property owned by a vendor exceeds Rs. 50,000, but the vendor disposes of only a portion of the said property by a deed for a consideration of less than Rs. 50,000, a certificate under section 230A of the Income-tax Act would be required. 2. For the purposes of section 230A of the Income-tax Act, it is the value of the property and not the value of the interest therein which is transferred which has to be considered. However, if the interest in the property transferred could be said to be separate identifiable property under the ownership of a person, (for instance, a person owns a flat in a co-operative society), it may be taken as a separate property and if the value of the flat is less than Rs. 50,000 then it is only the value of the flat which should be taken into account and not the value of the whole property consisting of all the flats together. For this purpose, the extent of the ownership of the transferor, the fact whether it is a separate unit assessed to municipal taxes and whether it is a separate identifiable unit would be relevant. The position would not change if a person owns even two or three flats in the building. These two or three flats are also to be considered as separate properties if they are separate identifiable units and re-assessed separately to municipal taxation. 3. These instruction may be brought to the notice of all the officers under your charge, for their guidance. They may also be brought to the notice of the State Government at your headquarters and they may be requested to appraise their Registrars of this position.