Comparison of Section 53 "Full value of consideration for transfer of assets other than capital assets in certain cases" between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

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....and or building or both) is at a value below the stamp duty value. It matters because it changes the taxable measure for profits and gains of business or profession where undervaluation vis-`a-vis stamp duty arises. The provision affects taxpayers engaged in sale/transfer of land and buildings, tax authorities assessing business income, and industries dealing in real estate. Effective date or decision date: Not stated in the document. Background & Scope Statutory hook: Clause 53, Income Tax Bill, 2025 (Old Version), addressing "Full value of consideration for transfer of assets other than capital assets in certain cases" under the head "Profits and gains of business or profession." The provision applies to transfers of assets other than c....

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.... and (4) shall apply. Coverage is limited to non-capital assets, specifically land and/or buildings. The clause does not define "stamp duty" or "stamp duty value" within the text provided. It does not specify procedures for valuation beyond cross-reference to section 78(2) and (4). Interpretation Legislative intent as discernible from the text: the legislature aims to prevent understatement of consideration in transactions of land/buildings by enabling tax computation to adopt the stamp duty valuation where declared consideration is lower than stamp duty benchmarks. The 110% threshold in sub-section (2) establishes a tolerance band where small variances do not trigger deeming. Sub-sections (3) and (4) indicate a deliberate rule allowing ....

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....kh; stamp duty value Rs. 1.02 crore. 110% of consideration = Rs. 1.045 crore. Since stamp duty value (Rs. 1.02 crore) does not exceed 110% of consideration, sub-section (2) applies and actual consideration (Rs. 95 lakh) is deemed full value. (Hypothetical calculation consistent with the text.) * Example 3: Agreement dated 1 Jan; registration 1 Mar. Stamp duty value as on agreement date is Rs. X. If part of consideration was paid through specified banking/online mode on or before 1 Jan, then per sub-sections (3) and (4) stamp duty value as on agreement date may be taken as full value under sub-section (1). (Hypothetical consistent with the text.) Interplay Sub-section (5) expressly incorporates the provisions of section 78(2) and (4) for....

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....ction (5) - cross-reference to section 78 Refers to "section 78(2) and (4)" for determination of value adopted/assessed/assessable under sub-section (1). Refers to "section 78(2) and (3)" for determination of the stamp duty value under sub-section (1). Practical impact of the difference: The only textual difference in the two versions provided concerns the cross-reference in sub-section (5). The Bill's old version cross-references section 78(2) and (4), whereas the enacted Section 53 cross-references section 78(2) and (3). The practical impact depends entirely on the substantive content of section 78(3) versus section 78(4)-which are not reproduced in the provided documents. Therefore, specific consequences cannot be ascertained fr....