Taxability in hand of employee
This query is : Resolved
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Anil Khatri
(Querist)
23 February 2026
An employer transferred a company-owned flat to an employee for ₹10 lakh. Stamp value = ₹48 lakh Cost 30 lac bought 6 yrs ago WDV in books = ₹12 lakh Employer treats difference as business loss. Employee treats it as purchase transaction. What is tax implications for employee only
24 February 2026
The employee must report ₹38 Lakh as taxable income in the year of transfer. Treating it as a "simple purchase" is a significant risk; the law views the ₹38 Lakh discount as a taxable windfall. Consequently, the employee's tax liability could exceed ₹11.85 Lakh (assuming a 30% slab + cess).
Amol S Joglekar
(Expert)
24 February 2026
The difference is income from other sources in the hands of Employee
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