Immovable property acquired less than SDV

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231 Points Posted on 28 January 2023
a person acquired immovable property for 10 lacs but the SDV was 25 lacs.

what are the tax implications on it?
Is it taxable u/s 56(2)(x) or some other tax implications?
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On 28 January 2023 at 14:54 Report
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Quick Summary
If you acquire immovable property for a price significantly lower than its Stamp Duty Value (SDV), the difference is generally considered taxable income. This differential amount is typically taxed under Section 56(2)(x) of the Income Tax Act as income from other sources. Be aware that interest may also apply to this amount.

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SEO Sai Gr. Hosp.
212453 Points Posted on 28 January 2023

Yes, the differential amount is taxable u/s. 56(2)(x) of IT act.

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On 28 January 2023 at 15:09
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CA IN PRACTICE
150 Points Posted on 28 January 2023

Differential amount is considered as  income from other sources under sec. 56(2)(x).

Tax is payable on differential amount along with interest (if applicable).

 

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On 28 January 2023 at 15:41

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