50C and 56(2)(x)

This discussion addresses the applicability of Section 50C and Section 56(2)(x) of the Income Tax Act when selling a jointly owned, litigated property. The core issue is whether the capital gains tax will be calculated based on the stamp duty value (90 lakhs) or the lower sale price (32 lakhs) due to ongoing disputes and title issues. It also explores the implications if the buyer is a real estate partnership firm and how the difference between the stamp duty value and sale price might attract tax under Section 56(2)(x) for the purchaser.