Section 78 — Special provision for full value of consideration for transfer of land or building
Old Act equivalent: Section 50C of IT Act 1961 Sub-part: E.—Capital gains
Statutory Text
(1) If the consideration received or accruing from the transfer of a capital asset, being land or building or both, is less than the stamp duty value, then, for the purposes of section 72, the stamp duty value shall be deemed to be the full value of the consideration received or accruing as a result of such transfer, subject to the following:— (a) the stamp duty value on the date of agreement may be taken as the full value of consideration, if— (i) the date of the agreement fixing the consideration and the date of registration for the transfer of the capital asset are not the same; and (ii) part or full consideration is received on or before the date of the agreement in “specified banking or online mode” as defined in section 66(32); (b) if the stamp duty value does not exceed 110% of the consideration received or accruing from such transfer, such consideration shall be deemed to be the full value of the consideration for section 72. (2) Without prejudice to the provisions of sub-section (1), the Assessing Officer may refer the valuation of the capital asset to a Valuation Officer, and the provisions of section 269(3) to (8), shall, with necessary modifications, apply in relation to such reference, where— (a) the assessee claims that the stamp duty value exceeds the fair market value of the property as on the date of transfer; and (b) the stamp duty value has not been disputed in any appeal or revision or no reference has been made before any other authority, court or the High Court. (3) If the value determined by the Valuation Officer on a reference made under sub-section (2) exceeds the stamp duty value, such stamp duty value shall be taken as the full value of consideration. Special provision for full value of consideration for transfer of share other than quoted share.
Sub-sections
Sub-section (1)
If the consideration received or accruing from the transfer of a capital asset, being land or building or both, is less than the stamp duty value, then, for the purposes of section 72, the stamp duty value shall be deemed to be the full value of the consideration received or accruing as a result of such transfer, subject to the following:— (a) the stamp duty value on the date of agreement may be taken as the full value of consideration, if— (i) the date of the agreement fixing the consideration and the date of registration for the transfer of the capital asset are not the same; and (ii) part or full consideration is received on or before the date of the agreement in “specified banking or online mode” as defined in section 66(32); (b) if the stamp duty value does not exceed 110% of the consideration received or accruing from such transfer, such consideration shall be deemed to be the full value of the consideration for section 72.
Sub-section (2)
Without prejudice to the provisions of sub-section (1), the Assessing Officer may refer the valuation of the capital asset to a Valuation Officer, and the provisions of section 269(3) to (8), shall, with necessary modifications, apply in relation to such reference, where— (a) the assessee claims that the stamp duty value exceeds the fair market value of the property as on the date of transfer; and (b) the stamp duty value has not been disputed in any appeal or revision or no reference has been made before any other authority, court or the High Court.
Sub-section (3)
If the value determined by the Valuation Officer on a reference made under sub-section (2) exceeds the stamp duty value, such stamp duty value shall be taken as the full value of consideration. Special provision for full value of consideration for transfer of share other than quoted share.
Provisos
None.
Explanations
None.
Tables
None.
Key Structure
- Applies to: Any assessee transferring land or building or both.
- Asset type: Capital asset being land or building or both.
- Conditions: Where consideration received or accruing is less than stamp duty value, the stamp duty value is deemed to be the full value of consideration for computing capital gains under section 72. Assessee may use the stamp duty value on the date of agreement (instead of registration date) if the agreement date and registration date differ and part or full consideration was received on or before the agreement date in specified banking or online mode as defined in section 66(32).
- Time limits: None specified in this section.
- Monetary limits: Safe harbour of 110% — if stamp duty value does not exceed 110% of the actual consideration, the actual consideration is accepted as the full value of consideration.
- Exceptions: Assessing Officer may refer valuation to a Valuation Officer under sub-section (2) where the assessee claims stamp duty value exceeds fair market value and the stamp duty value has not been disputed in appeal, revision, or before any other authority, court, or High Court. If the Valuation Officer’s value exceeds stamp duty value, the stamp duty value is taken as full value of consideration.
Cross-References
- s072-computation — stamp duty value is deemed the full value of consideration for the purposes of section 72.
- s066 — section 66(32) defines “specified banking or online mode” (not yet ingested).
- s269 — provisions of section 269(3) to (8) apply to Valuation Officer references (not yet ingested).
Amendment Notes
None noted from the extracted pages.