Section 50C

access_time 2019-02-15T07:17:02.362Z face CA N Raja Direct Taxation


                               let us understand about section 50c which prescribes special provision for considering full value of consideration in certain cases of transfer of capital asset.  let's say you are transferring a Capital Asset and consideration is received or say accrued and the Capital Asset what you have transferred is Land or building  but the issue in this cases is consideration is less than the the value adopted or assesed or assessable by stamp valuation authority of state government which they do for arriving at stamp duty on sale of that asset. if this is the scenario, then for the purpose of income tax you have to consider only the value adopted or assessed or assessible by stamp valuation authority as full value of consideration from that transfer. This is provided in Sub sec 1.  

               The question which can arise here  is on which date stamp value have to be considered?   This query arises especially when there is difference between date of agreement and date of registration -  it is provided that in those cases stamp value on the date of agreement should be taken for this purpose - Some conditions are also attached to this - i.e., For considering stamp duty value as on the date of agreement, either the full amount of consideration or part of the consideration should have been paid by way of an account payee cheque or account payee bank draft or by using ECS through bank account either on the date of agreement it or before the date of agreement -  for transferring that immovable property. However, there is a marginal exception here. it is like this. if the stamp duty value is not exceeding 105 percentage of sale consideration then that actual consideration itself can be considered as full value of consideration arising from transfer of that Capital Asset.

Let us also talk about reference to valuation officer in this context. let us say assessee is making a claim before assessing officer that the value what they have adopted is exceeding fair market value of the property on the date of transfer and that value has not been disputed in in any appeal or revision or let us say no reference has been made Before any authority or Court or High Court. Then in those cases assessing officer can refer valuation of the Capital Asset to a valuation officer and if value ascertained by that valuation officer exceeds value by stamp authority then, the value adopted or assessed or assessible by stamp authority will be taken as full value of consideration. This is provided in Sub Sec 3.


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