Section 50C - Special Provision For Full Value Of Consideration In Certain Cases - Income Tax - Ready Reckoner - Income Tax

Section 50C : Special provision for full value of consideration for computation of capital gain - Stamp Duty Value (SDV) shall be treated as FVOC Where the sales consideration received or accruing on transfer of a capital asset, being land or building or both is less than the value assessed or assessable by the stamp valuation authority for the purpose of payment of stamp duty, the value so assessed or assessable shall deemed to be sale consideration . Where the date of the agreement fixing the amount of consideration and the date of registration for the transfer of the capital asset are not the same, the value adopted or assessed or assessable by the stamp valuation authority on the date of agreement may be taken for the purposes of computing full value of consideration for such transfer. rovided further that the first proviso shall apply only in a case where the amount of consideration, or a part thereof, has been received by way of an account payee cheque or account payee bank draft or by use of electronic clearing system through a bank account or through such other electronic mode as may be prescribed on or before the date of the agreement for transfer. Other modes prescribed - Notification No 08/2020 dated 29-01-2020 . Credit Card; Debit Card; Net Banking; IMPS (Immediate payment service); UPI (unified Payment Interface); RTGS (Real Time Gross Settlement); NEFT (National Electronics Funds Transfer); and BHIM (Bharat Interface For Money) Aadhar Pay Where the assessee claims that the value so assessed or assessable exceeds the FMV of the property and the value so assessed or assessable has not been disputed in any appeal or revision before any authority/ court, the A.O may refer the valuation of the capital asset to a valuation officer. Where value ascertained by Valuation Officer. Exceeds the stamp duty value : stamp duty value shall be taken as sales price. Is lower than stamp duty value : Value ascertained by valuation officer shall be taken as sales price. Exception:- Where the value adopted or assessed or assessable by the stamp valuation authority does not exceed one hundred and ten per cent.(110%) of the consideration received or accruing as a result of the transfer, the consideration so received or accruing as a result of the transfer shall, for the purposes of section 48 , be deemed to be the full value of the consideration. Note: The word assessable has been added so that the Section 50C shall also apply where the transfer of immovable property is not registered with the registrar of immovable property and the property is transferred by way of power of attorney or through agreement to sell. Section 50C provides for deeming the value for stamp duty purposes as full value of consideration is applicable only for capital assets and not for business assets. Section 50C is not applicable for slump sale.