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Taxability in hand of employee

This query is : Resolved 
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Discussion on taxability for an employee receiving a company-owned flat at a discounted price. Experts clarified that the Rs. 38 lakh difference between purchase price and stamp duty value is taxable in the employee's hands as Income from Other Sources.

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(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
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Aashok Kumar Sharma online

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Aashok Kumar Sharma online (Expert)
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).
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Amol S Joglekar

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Amol S Joglekar (Expert)
24 February 2026 The difference is income from other sources in the hands of Employee
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