Taxability in hand of employee

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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.

Anil Khatri

Anil Khatri (Querist)
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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

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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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).