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The document is Clause 53 of the Income Tax Bill, 2025 (Old Version), prescribing deeming provisions for the "full value of consideration" where transfer of assets other than capital assets (specifically land 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.
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 capital assets where the asset in question is land or building or both. The clause sets out rules to deem the stamp duty value as the full value of consideration for computing profits and gains where the consideration received or accrued is less than the stamp duty value.
The clause contains five sub-sections:
Sub-section (1): If consideration received or accrued for transfer of an asset (other than a capital asset) being land or building or both is less than the stamp duty, the stamp duty value shall be deemed to be the full value of consideration for computing profits and gains from transfer of such asset.
Sub-section (2): Sub-section (1) does not apply if the stamp duty value does not exceed 110% of the consideration received or accrued; in that case, the actual consideration received or accrued shall be deemed to be the full value of consideration.
Sub-section (3): Where the date of agreement fixing the value of consideration and the date of registration are different, the stamp duty value as on the date of agreement may be taken as the full value of consideration under sub-section (1).
Sub-section (4): Sub-section (3) applies only where the amount of consideration or part thereof has been received by specified banking or online mode on or before the date of agreement.
Sub-section (5): For determination of the value adopted or assessed or assessable under sub-section (1), the provisions of section 78(2) 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).
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 stamp duty value as on agreement date to be used-subject to actual receipt of consideration (or part) through specified banking/online modes-thereby linking electronic/payment evidence to the ability to rely on agreement-date stamp valuation.
Carve-outs and conditions are set out:
Sub-section (5) expressly incorporates the provisions of section 78(2) and (4) for determination of the value "adopted or assessed or assessable" under sub-section (1). The text does not reproduce section 78; therefore, the mechanics and criteria in section 78 are not stated in the document. Not stated in the document: whether other provisions, rules, notifications, or circulars interact with Clause 53, or any transitional arrangements.
| Topic | Clause 53 of the Income Tax Bill, 2025 (Old Version) | Section 53 of the Income-tax Act, 2025 |
|---|---|---|
| Text of sub-section (1) | Deems stamp duty value as full value where consideration received or accrued is less than the stamp duty. | Deems stamp duty value as full value where consideration received or accrued is less than the stamp duty value. |
| Sub-section (2) - 110% threshold | Same: carve-out where stamp duty value does not exceed 110% of consideration; actual consideration deemed full value. | Same language and effect. |
| Sub-section (3) - agreement vs registration date | Stamp duty value as on date of agreement may be taken as full value where dates differ. | Same: allows stamp duty value as on agreement date to be taken as full value. |
| Sub-section (4) - payment mode condition | Applies only where amount or part is received by specified banking/online mode on or before date of agreement. | Same condition in substance: amount or part received by specified banking/online mode on or before agreement date required. |
| Sub-section (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 from the text given. Not stated in the document: the substantive differences between section 78(3) and section 78(4), and how they affect valuation methodology or procedural outcomes. In consequence, the only observable immediate effect is that the enacted text narrows or alters the cross-referential provisions that govern determination of stamp duty value compared with the Bill; the precise legal and practical significance of that alteration is not stated in the document.
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