New Guidelines for Calculating Capital Gains: Section 50C and Stamp Duty Value Considerations Explained

Section 50C of the Income Tax Act addresses the computation of capital gains by considering the Stamp Duty Value (SDV) as the full value of consideration (FVOC) when the sales consideration for land or buildings is less than the SDV. If the agreement date and registration date differ, the SDV on the agreement date may be used, provided payment is made through specified banking methods. If the assessed value exceeds the fair market value and is undisputed, a valuation officer may determine the asset's value. Exceptions apply if the SDV does not exceed 110% of the sales consideration. Section 50C applies only to capital assets, not business assets or slump sales.

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