Transfer of rural agriculture land for a value more than it's stamp duty value

Rural agriculture land transferred at a
value less than stamp duty value.

What would be the tax consequences on such difference amount ??

Please guide..
Replies (2)
Quick Summary
This discussion explores the tax consequences when rural agricultural land is transferred for a value less than its stamp duty valuation. While one perspective suggests the difference is taxable in the receiver's hands due to inadequate consideration, another expert clarifies that rural agricultural land in India is not considered a capital asset and therefore, its transfer is tax-free, regardless of the agreement value compared to stamp duty.

In my opinion, the difference amount is taxable in the hands of receiver, as he is getting immovable property for inadequate consideration.

Also, the exemption of rural land as a capital asset is a standalone section, we can't assume that it is also applicable on taxability under IFOS(getting immovable property for low consideration).
There is no issue if the agreement value is more than stamp duty value. The issue arises only if agreement value is lower than stamp duty value.

Transfer of Rural Agriculture Land in India is not a capital asset and hence not liable to capital gains. It is a tax free transfer.

Regards
CA. Raj Doshi
R C D & Co.
Chartered Accountants
E : raj @ rcdco.in

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