Stamp duty & registration charges paid on land purchase

This query is : Resolved

DHANANJAY S KULKARNI (Querist)
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26 August 2019 In case NRI purchase land in India below Stamp Duty valuation while calculating income tax u/s 56(2)(x) whether Stamp duty & Registration Charges & commission paid are added to purchasing price (cost of acquisition )

Whether actual purchase price plus above mentioned expenses are deducted from Stamp Duty Valuation and resultant to be considered as income from other sources or not please explain

ramprasad

ramprasad (Expert)
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26 August 2019 Sec 56(2)(X) inter-alia provides that where the Stamp Duty Value of the Immovable Property exceeds the consideration (subject to 5% concession) for the property is taxable under the head other sources. It has reference to the consideration and not relate to cost.