How to object stamp duty value if property is sold at much lesser price

I have  to sale property at much lower than the stamp duty value (at 15 lakh and sdv is 29 lakh ) due to the very narrow road/pathway. when i put SDV while filing the ITR , tax is being calculted by sytem on stam duty value so there is significant amount of tax liability. i want to object the stamp duty value as per section 50C(2) but not finding ways. looking for help.

Replies (4)
Quick Summary
If you've sold a property for less than its Stamp Duty Value (SDV) and are facing a higher tax bill, you can object to the SDV under Section 50C(2). To do this, obtain a report from a Government Registered Valuer that details reasons for the lower sale price, such as a narrow access pathway. Since the e-filing portal doesn't have a direct option for this, you'll need to declare the actual sale price and then formally request the Assessing Officer to refer the property for valuation by a Departmental Valuation Officer (DVO) when responding to any tax mismatch notices.

To object to an inflated Stamp Duty Value (SDV) of ₹29 Lakhs against an actual sale of ₹15 Lakhs under Section 50C(2), obtain an independent Government Registered Valuer report documenting the narrow pathway defect. Because the automated e-filing portal does not have a direct button to invoke Section 50C(2), declare actual consideration or respond to the CPC Section 143(1)(a) mismatch notice by formally requesting the Assessing Officer to refer the property to a Departmental Valuation Officer (DVO). If the DVO determines a lower market value, that lower figure will be adopted for your capital gains tax computation.

What amount should I put in the field where there is required to fill stamp duty value. ? If I put SDV price then I have to pay tax on 29 lakh and then submit the return.

The 50C(2) route Aashok mentioned is right, but for the actual ITR form itself, don't overthink the fields. Schedule CG asks for both the full value of consideration and the value adopted by the stamp valuation authority separately. Put 15 lakh in the first, 29 lakh in the second, exactly as they actually are.

The problem is the variance. 15 versus 29 is close to 50%, well past the 10% safe harbour, so the utility is going to pick up the higher SDV figure for your capital gains computation no matter what you do at the filing stage. There's no field or checkbox that lets you override that upfront.

What actually matters here is timing. The 50C(2) objection only becomes relevant once the department flags the mismatch, either through a 143(1)(a) notice or scrutiny. That's when you request the AO refer the property to a DVO. Trying to fight this at the point of filing doesn't really work since the system isn't built to take a dispute at that stage.

So get your registered valuer's report ready now, not later. File the return with actual figures, expect the demand or mismatch notice to come given the size of the gap, and use the valuer's report the moment it does to request the DVO reference. That's the actual sequence that works, even though it feels backwards to file first and argue after.

Very practical breakdown. One important point worth highlighting: Section 50C(2) is not just a technical provision—it gives the taxpayer a statutory mechanism to challenge an inflated stamp duty value through the DVO.

Where genuine factors like restricted access, narrow pathways, location disadvantages, or other property-specific defects affect market value, proper contemporaneous documentation and valuation evidence can make a significant difference.

The key is to raise the objection properly and preserve the evidence before the assessment proceedings move ahead.

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