Section: 50C
- In case of land or building or both held as capital asset, if sales consideration less than Stamp Duty Value (assessed/ assessable by stamp valuation authority) then such Stamp Duty Value shall be deemed to Full Value of Consideration.
- However, Where the Stamp Duty Value does not Exceed than 105% of Consideration, Then Sale consideration shall be treated as Full Value of Consideration.
Computation Of Capital Gain u/s 50C
| Particular | Amount |
| Full value of consideration: Sale value or stamp duty value (Higher) | XXX |
| Less:- Expenditure in relation to transfer | (XXX) |
| Net Consideration | XXX |
| Less: Cost of Acquisition | (XXX) |
| Less: Cost of Improvement | (XXX) |
| Capital Gain/loss | XXX |
Example:
If sale consideration is Rs. 15,00,000/-. In this case, stamp duty value assessed by authority is Rs. 15,50,000/-
| Particulars | Amount |
| Sale value | 15,00,000 |
| Stamp Duty Value | 15,50,000 |
| Percentage of SDV/Sale value Acceptable Value (10% variation is allowed) | 103.33% |
| Full value of consideration will be Sale value [since SDV is not more than 105% of sale value] | 15,00,000 |
Where Value Ascertained by Valuation Officer
Where assessee claims that Stamp duty value is more than the fair market value of the property & such Stamp Duty Value has not been disputed in any appeal then the A.O may refer the valuation to valuation officer (VO)
- If value certified by the valuation officer that which is more than the Stamp duty value then, Stamp Duty Value is the full value of consideration.
- If value certified by the valuation officer that which is less than the stamp duty value ,then value ascertained by valuation officer is full value of consideration.
If Agreement date and Registration date are different
Normally stamp duty value considered on date of Registration is considered. If date of registration and date of agreement are different , then assessee can take stamp duty value on date of agreement if he received consideration or part thereof up to the date of agreement in a/c payee cheque, Demand Draft, uses of electronic clearing system through a bank account or any other electronic modes as may be prescribed.
Example
| Particulars | Case 1 | Case 2 | Case 3 [Imp] |
| Stamp duty value on the date of Agreement | 27,00,000 | 26,00,000 | 22,00,000 |
| Stamp duty value on the date of Registration | 30,00,000 | 30,50,000 | 28,50,000 |
| Payment of consideration | Before the date of agreement | After the date of agreement | Before the date of agreement |
| Mode of payment | A/c payee cheque | A/c payee cheque | Cash |
| Stamp Duty value for the purpose of Section 50C | 27,00,000 | 30,50,000 | 28,50,000 |
Other electronic Modes
Other electronic modes means it is include
- Credit card
- Debit card net banking
- Immediate payment service (IMPS)
- unified payment Interface (UPI)
- Real Time Gross Settlement (RTGS)
- National Electronic Funds Transfer(NEFT) and
- Bharat Interface for Money (BHIM)
