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Taxation in case of Builder

Ashwini Kalbhor (Tax Practitioner) (104 Points)

25 March 2022

Hello,

Help me out in following matter,

If a builder is selling flats as a stock in trade at consideration below stamp duty value, what will be the selling price of the flats for tax calculation purpose - Sale Consideration or stamp duty value ?

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1 Replies

hemant sharma (141 Points)
Replied 25 March 2022

According to section 43CA, if the consideration received by an assessee on transfer of immovable property is less than the stamp duty value, then, the value so adopted or assessed or assessable shall be deemed to be the full value of consideration for the purposes of computing income under the head “Profits & Gains of Business or Profession”.