Section 50C of Income Tax Act "Special provision for full value of consideration in certain cases"
50C. (1) Where the consideration received or accruing as
a result of the transfer by an assessee of a capital asset,
being land or building or both, is less than the value
adopted or assessed or assessable by any authority of a
State Government (hereafter in this section referred to as
the "stamp valuation authority") for the purpose of payment
of stamp duty in respect of such transfer, the value so
adopted or assessed or assessable shall, for the purposes of
section 48, be deemed to be the full value of the
consideration received or accruing as a result of such
transfer :
Provided that 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:
Provided 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 98[or through such other
electronic mode as may be prescribed], on or before the date
of the agreement for transfer:
Provided also that where the value adopted or assessed or
assessable by the stamp valuation authority does not exceed
one hundred and 99[five] per cent 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.
(2) Without prejudice to the provisions of sub-section (1),
where-
(a) the assessee claims before any Assessing Officer that
the value adopted or assessed or assessable by the stamp
valuation authority under sub-section (1) exceeds the fair
market value of the property as on the date of transfer;
(b) the value so adopted or assessed or assessable by the
stamp valuation authority under sub-section (1) has not been
disputed in any appeal or revision or no reference has been
made before any other authority, court or the High Court,
the Assessing Officer may refer the valuation of the
capital asset to a Valuation Officer and where any such
reference is made, the provisions of sub-sections (2), (3),
(4), (5) and (6) of section 16A, clause (i) of sub-section
(1) and sub-sections (6) and (7) of section 23A, sub-section
(5) of section 24, section 34AA, section 35 and section 37
of the Wealth-tax Act, 1957 (27 of 1957), shall, with
necessary modifications, apply in relation to such reference
as they apply in relation to a reference made by the
Assessing Officer under sub-section (1) of section 16A of
that Act.
Explanation 1.-For the purposes of this section, "Valuation
Officer" shall have the same meaning as in clause (r) of
section 2 of the Wealth-tax Act, 1957 (27 of 1957).
Explanation 2.-For the purposes of this section, the
expression "assessable" means the price which the stamp
valuation authority would have, notwithstanding anything to
the contrary contained in any other law for the time being
in force, adopted or assessed, if it were referred to such
authority for the purposes of the payment of stamp duty.
(3) Subject to the provisions contained in sub-section (2),
where the value ascertained under sub-section (2) exceeds
the value adopted or assessed or assessable by the stamp
valuation authority referred to in sub-section (1), the
value so adopted or assessed or assessable by such authority
shall be taken as the full value of the consideration
received or accruing as a result of the transfer.
What is Capital gains? Section 45 of Income Tax Act 1961
What are the Transactions not regarded as transfer? Section 47 of Income Tax Act 1961
What is Withdrawal of exemption in certain cases? Section 47A of Income Tax Act 1961
What is Mode of computation? Section 48 of Income Tax Act 1961
What is Cost with reference to certain modes of acquisition? Section 49 of Income Tax Act 1961