TaxTMI 
TaxTMI 
our client has purchased one flat in Ghatkopar mumbai. he has paid advances against his flat in year 2009 with one particular rate. Builder has given possession in year 2014 when my client has paid full amount. when agreement made in 2014 rate of stamp duty rate was high i.e.Agreement value lower then stamp act value. now mater is observe by Income tax department that it is violation of section 50 C AND it is chargeable for tax on difference amount. can you advise for this or give us any Judgment regarding section 50C AS PER MY PROBLEM.
Income tax Act Section 50C
shamji bhanushali
Income Tax Dispute Over Property Value: Section 50C Implications for Buyers and Builders' Undervaluation Practices A client purchased a flat in Ghatkopar, Mumbai, paying advances in 2009 and completing payment upon possession in 2014. The agreement value at the time of possession was lower than the stamp duty value, leading the Income Tax Department to observe a violation of Section 50C of the Income Tax Act, which taxes the difference. One respondent agreed with the department's tax demand, while another noted that builders often undervalue properties for stamp duty purposes, complicating the buyer's ability to discern the true market value. (AI Summary)