Taxability on purchases of flat

one of the assessee purchased flat
govt value is 22 lac
The actual sale value is 15 lac
then any tax liability arises on the difference amount i.e 7 lac
Replies (5)
Quick Summary
When purchasing a flat, if the actual sale price is less than the government's stamp duty value, the difference can be subject to income tax. Specifically, if this difference exceeds £50,000, it is taxable under the 'income from other sources' head as per Section 56(2)(x) of the Income Tax Act. It's advisable to ensure the sale consideration matches or exceeds the stamp duty value to avoid this tax liability.

Yss if the assessee pays the amount less than stamp duty value is taxable under the head income from other sources
That means the whole amount of Rs 7lac is taxable
What is the fair market value existing on that date.
Radhika
As per section 56(2)(×), 7lakh being the difference of sale consideration and SDV greater than 50000 is taxable under the head of Other sourced
It would be better for you if seller sold the property with sale consideration of 22lac.
Here 56(2)(x) does not arise

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Related Topics :

Loading
Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details
Company
29 August 2026
Chartered Accountant

Velionit Consulting PVT LTd

Mumbai

CA

View Details
Company
ARTICLESHIP 24 August 2026
Chartered Accountant Articles

Rohit KC Jain & Co

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 07 September 2026
Article/ Paid Assistant

Murali and Sumeet Chartered Accountant

Bengaluru

CA Foundation

View Details
Company
21 August 2026
Finance Manager

Resollect Technologies Pvt Ltd

Mumbai

CA

View Details
Company
ARTICLESHIP 17 August 2026
CA Article Trainee

ASC Group

Noida

CA Inter

View Details
Company
ARTICLESHIP 10 August 2026
Article Assistant

Suraj Garg and Associates

New Delhi

CA Inter

View Details
Company
18 August 2026
Audit Assistant - Remote / Work From Home

CA ANOOP P K & ASSOCIATES

Kozhikode

CA Inter

View Details