Income from other sources

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 October 2012 Hello!!! I have a query regarding income from other sources.... Under Section 56 , of I T Act, the difference between Stamp duty value and the Agreement value if more than Rs 50,000 would be taxed, for e.g : IF Stamp duty value is Rs 23 lacs and the Agreement value is Rs 32 lacs, so the difference of Rs 9 lacs would be taxed under section 56 ?? Am i correct in understanding the same.... Please give your valualble suggestions with a practical example , if possible..... Thanks in advance.....

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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01 October 2012 Your interpretation is slightly incorrect.

The actual interpretation is reverse of what you have mentioned in the query.

Agreement Value = Rs. 23 lakhs
Stamp duty value = Rs. 32 lakhs.

Since the stamp duty value exceeds the agreement value by Rs. 50,000 , Rs. 9lakhs shall be taxable under Section 56(2)(vii).

The provision has been inserted to counter transactions where persons show less amount to avoid tax.

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