Amendments in section 50c

Save Share

This query is : Open

bhavesh goswami (Querist)

06 April 2013 Dear All,

Can anyone tell me the proposed changes in section 50c in case of stamp duty valuation?

whether purchaser ( transferee) is liable to pay tax on difference amount??

Pls it is very urgent

Sumit Grover

Sumit Grover (Expert)

06 April 2013 The amendment has been brought u/s 56(2)(vii)(b)...and not section 50C.....
And yes, the buyer needs to pay tax on differential amount (Stamp value less sale consideration) in case such difference exceeds Rs. 50,000
The following can be exmplained with the help of following example:

Mr. A sold land to Mr. B:
Sale consideration---Rs. 90 Lacs
Stamp valuation value---Rs. 95 Lacs

For seller:
Sale consideration for seller(as per section 50C)---Rs. 95 lacs

For Buyer:
The amendment is that the buyer has to pay the tax on Rs. 5 Lacs(i.e. 95-90 lacs).

Message likes : 1 times

bhavesh goswami

bhavesh goswami (Querist)

08 April 2013 ok..

Is it possible to make agreement to sell before the said amendments??

I think this will lead to double taxation..!! isn't it???

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now