Purchase of Property for consideration less than Stamp duty Value
This query is : Resolved
23 May 2024
I had purchased a property in the name of my father who is senior citizen aged 70 years for Rs15,00,000 and the Stamp duty value(SDV) of that property is 37,50,000, Do we liable to pay tax on difference amount (SDV- Sale consideration) I,e 22,50,000.
Please note property purchased from cousin by mutual understanding for less value
Please note property purchased from cousin by mutual understanding for less value
23 May 2024
Yes. Additional tax liability arises.
24 May 2024
According to Section 56(2)(x) of the Income Tax Act, if an immovable property is transferred for a consideration which is less than the stamp duty value, the difference between the stamp duty value and the actual consideration is taxable in the hands of the buyer as "income from other sources"
There are some exceptions to this rule.
For example, if the difference between the stamp duty value and the actual consideration is less than Rs. 50,000, then this provision won't be applicable. if the property is received as a gift or inheritance etc.
There are some exceptions to this rule.
For example, if the difference between the stamp duty value and the actual consideration is less than Rs. 50,000, then this provision won't be applicable. if the property is received as a gift or inheritance etc.
24 May 2024
How to calculate such tax and how to show in ITR as there is no option to show this if total income doesn't exceed 50lakhs
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