Transfer of Immovable Properties on Sale Consideration less than Stamp Duty Valuation

| Last updated: 08 October 2021

Quick Summary
This article explains how the Indian Income Tax Act addresses property sales where the agreed sale consideration is lower than the Stamp Duty Valuation. Section 50C applies to capital assets, treating the Stamp Duty Value as the sale consideration for calculating capital gains. For builders and developers, Section 43CA covers properties held as stock-in-trade, ensuring that the Stamp Duty Value is considered for computing business income. Both sections aim to curb black money generation in real estate transactions.

Dear Friends, You know that as a citizen we have tendency to save/avoid/evade taxes by adopting various tricks and transactions. A lot of black money is generated through transfer of various types of immovable properties. The seller and the purchaser generally mutually agree on a transaction to e
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FCS Deepak Pratap Singh

About the Author

Associate Vice President - Secretarial & Compliance (SBI General Insurance Co. Ltd.)

Dear Friends, MyselfFCSDeepak P. Singh ( B.Sc.. LLB, FCS. FIII, CIAFP, CRMP, ID) , A Fellow Member of ICSI, Law Graduate ,Fellow Member of Insurance Institute of India, Certified Independent Director ,Certified Insurance Anti Fraud Professional , Certified Risk Governance Professional ( ICSI-III) and cleared Limited I ... Read more

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