Understanding the Full Value of Consideration of capital assets under Business income Head: Clause 53 of the Income Tax Bill, 2025 vs. Section 43CA of the Income-tax Act, 1961

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... er of assets other than capital assets in certain cases. Income Tax Bill, 2025 Introduction The Income Tax Bill, 2025 introduces Clause 53, which addresses the full value of consideration for the transfer of assets other than capital assets, specifically land or buildings. This clause is significant as it aims to ensure that the profits and gains from such transfers reflect the true economic va .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... and gains. Detailed Analysis Clause 53 of the Income Tax Bill, 2025 * Sub-section (1): This provision mandates that if the consideration received for the transfer of land or building is less than the stamp duty value, the stamp duty value shall be deemed to be the full value of consideration for computing profits and gains. * Sub-section (2): An exception is provided where the stamp duty va .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Proviso: An exception is provided where the stamp duty value does not exceed 110% of the consideration. Additionally, a specific provision allows for 120% in certain residential unit transfers during a specified period. * Sub-section (3): Similar to Clause 53, it allows the stamp duty value as of the agreement date to be considered if the agreement and registration dates differ. * Sub-section .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ction 43CA. The absence of a definition for "residential unit" in Clause 53 may lead to interpretational challenges. Additionally, Clause 53 references Section 78 for value determination, which is not present in Section 43CA. Conclusion Clause 53 of the Income Tax Bill, 2025, and Section 43CA of the Income-tax Act, 1961, both serve to ensure that the consideration for property transactions refle .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X