Just a moment...

⚠ ✕
❮ Top
☎ Help
☰
×

By creating an account you can:

Logo TaxTMI
Keyword Search :
AI Tools : New
Ask tax questions in natural language. Powered by AI trained on the TaxTMI legal database. Use AI Tools ➞
Call Us / Help / Feedback✕

Contact Us At :

✉ E-mail: [email protected]

✆ Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters 0/2000
Make Most of Text Search ✕
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
    6. Text Search
  6. The system will try to fetch results that contains ALL your words.
  7. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
    8. Text Search
╳
Add to...
You have not created any category. Kindly create one to bookmark this item!
✕
Create New Category
Hide
Title :
Description :
❮❮ Hide
❮ Default View
Expand ❯❯
Close ✕
🔎 TMI Notes - Adv. Search ❯
TEXT SEARCH:

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In:
Main Text + AI Text ❯
  • Main Text
  • Main Text + AI Text
  • AI Text
Law:
---- All Laws---- ❯
  • ---- All Laws----
  • Benami Property
  • Bill
  • Central Excise
  • Companies Law
  • Customs
  • DGFT
  • FEMA
  • GST
  • GST - States
  • IBC
  • Income Tax
  • Indian Laws
  • Money Laundering
  • SEBI
  • SEZ
  • Service Tax
  • VAT / Sales Tax
Types:
---- All Types ---- ❯
  • ---- All Types ----
  • Act Rules
  • Case Laws
  • Circulars
  • Manuals
  • News
  • Notifications
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
Relevance Default Date
    Manuals Service Tax
    Whether proceedings can be reopened on the basis of a favourable decision in another case?
    Manuals Service Tax
    Whether a wrong decision by jurisdictional court is binding on the parties in absence of any appeal ...
    Manuals Service Tax
    Whether an order becomes a final order if no appeal has been filed against it?
    Manuals Service Tax
    Whether right to appeal is a inherent right? Whether it is necessary that right of appeal must be ex...
    Manuals Service Tax
    What is the meaning of 'Reason to Believe' in context to search & seizure provisions?
    Manuals Service Tax
    Whether in case, composite price (inclusive of service tax) is shown in invoice and no separate duty...
    Manuals Service Tax
    Whether Doctrine of unjust enrichment is applicable on finalisation of provisional assessments?
    Manuals Service Tax
    Whether Doctrine of unjust enrichment is applicable on duty paid under protest?
    Manuals Service Tax
    Whether data in "CD" can be a admissible evidence for refund claim under Section 11B? Whether data i...
    Manuals Service Tax
    Whether limitation of refund filing is applicable on the cases where amount paid to the department a...
    Manuals Service Tax
    Whether deposit of service tax before rendering services will be covered under limitation of refund...
    Manuals Service Tax
    Whether Appellate authority has empowered to increase the penalty? Whether Appellate authority can i...
    Manuals Service Tax
    Whether the penalty under section 78 of the Finance Act, 1994 can be reduced below the minimum limit...
    Manuals Service Tax
    Whether the penalty under Section 76 of the Finance Act, 1994 can be reduced below the limit prescri...
    Act Rules Service Tax
    Whether Service tax paid by back calculations i.e. service tax separately not charged will be covere...
    Act Rules Service Tax
    Whether assessee is liable to pay collected service tax as per provision of Sec.73A even if his turn...
    Manuals Service Tax
    Whether ignorance of law can be a factor for not to revoke extended period of limitation?
    Manuals Service Tax
    In what circumstances extended period of limitation is not enforceable? Whether SCN can be issued fo...
    Act Rules Service Tax
    Whether show cause notice related to period beyond 18 months or 5 years as the case may be, is valid...
    Manuals Service Tax
    Whether it is mandatory to mention specific head / sub head of services in SCN in which demand of se...
❮
❯
❯❯
Maximize Maximize Maximize
0 / 200
Expand Note
Add to Folder

No Folders have been created

+

Are you sure you want to delete "My most important" ?

NOTE:

Open Link
Notes
Showing Results for :
Reset Filters
Results Found:
Show All Summaries Hide All Summaries
Manuals Service Tax
Whether proceedings can be reopened on the basis of a favourable decision in another case?
Show AI Summary
Finality of proceedings: tax assessments cannot be reopened due to another taxpayer's favourable decision without recall in the same case.
Reopening tax assessment proceedings based on a favourable decision in another assessee's case is ordinarily not permitted; a final order in an assessee's own case remains effective until it is specifically recalled or set aside in that same proceeding.
Manuals Service Tax
Whether a wrong decision by jurisdictional court is binding on the parties in absence of any appeal ...
Show AI Summary
Finality of unappealed decisions: unchallenged jurisdictional rulings bind the parties until lawfully reversed.
A jurisdictional court's unappealed ruling, even if incorrect, becomes final and binding between the parties and remains so until reversed by a higher forum or other statutory remedy; thus unchallenged classificatory or determinative decisions must be obeyed in subsequent proceedings unless lawfully set aside.
Manuals Service Tax
Whether an order becomes a final order if no appeal has been filed against it?
Show AI Summary
Finality of administrative orders follows when no appeal is filed, and remand directions limit reconsideration scope.
An administrative order attains finality where an entitled party does not file an appeal against a Tribunal disposition; remand orders limit reconsideration to the specific issues directed by the Tribunal, and parties who do not contest merits before the Tribunal forfeit the ability to re argue those merits, so that authorities acting on remand cannot expand review beyond the remand directions.
Manuals Service Tax
Whether right to appeal is a inherent right? Whether it is necessary that right of appeal must be ex...
Show AI Summary
Right of appeal is not inherent; it exists only when statute creates and defines it, including scope and procedure.
The right of appeal is not inherent but is a statutory construct: appellate existence, scope and procedure must be authorized by the creating provision; omissions in citation do not automatically bar an otherwise maintainable appeal; absence of an appellate provision does not prevent an order from becoming final.
Manuals Service Tax
What is the meaning of 'Reason to Believe' in context to search & seizure provisions?
Show AI Summary
Reason to believe requires subjective belief grounded in material evidence, preventing arbitrary or capricious searches.
The concept of reason to believe requires that a subjective opinion be based on material on the record, not arbitrary or whimsical; it must be held in good faith and courts may test whether the reasons have a rational and relevant connection to the formation of belief, excluding extraneous considerations.
Manuals Service Tax
Whether in case, composite price (inclusive of service tax) is shown in invoice and no separate duty...
Show AI Summary
Inclusive pricing does not establish passing on of tax burden; composite invoices alone do not prove unjust enrichment.
Showing a composite price on an invoice does not, by itself, establish that the supplier passed the tax burden to customers or realized unjust enrichment; where prices remained unchanged after a tax was imposed, inclusive pricing alone is insufficient evidence that any element of tax was added to the price, and proof of an added tax component is required to infer passing on of the tax.
Manuals Service Tax
Whether Doctrine of unjust enrichment is applicable on finalisation of provisional assessments?
Show AI Summary
Doctrine of unjust enrichment excluded where a refund arises only after finalisation of provisional assessment.
The doctrine of unjust enrichment does not apply to refund claims that arise after the finalisation of provisional assessments; refunds or recoveries consequent on the final determination of duty liability fall outside the interim statutory refund framework and are not barred by unjust enrichment objections.
Manuals Service Tax
Whether Doctrine of unjust enrichment is applicable on duty paid under protest?
Show AI Summary
Unjust enrichment doctrine not bar to refund of duty paid under protest; provisional assessments preserve refund entitlement.
The doctrine of unjust enrichment does not bar refund claims for duty paid under protest; recoveries or refunds consequent on final determination of duty liability fall outside bars that would deny restitution. Provisional assessments and unresolved price and classification lists render clearances provisional, supporting the taxpayer's entitlement to have refund claims adjudicated on the basis of final liability rather than dismissed as struck by unjust enrichment.
Manuals Service Tax
Whether data in "CD" can be a admissible evidence for refund claim under Section 11B? Whether data i...
Show AI Summary
Admissibility of electronic records: computerised data on CD can support service tax refund claims and show no transfer of tax burden.
Data on compact disc (CD) can be admissible evidence for service tax refund claims where it constitutes computerised records recognised under the Information Technology Act and the Service Tax Rules. Such electronic records may also be used to prove that the incidence of service tax was not transferred to another party (absence of unjust enrichment), provided the data meets the statutory criteria for admissible computerised evidence and forms part of the assessee's maintained electronic records.
Manuals Service Tax
Whether limitation of refund filing is applicable on the cases where amount paid to the department a...
Show AI Summary
Limitation on refund filings: time-bar inapplicable where payments were not service tax and were excess realisations.
Limitation under Section 11B(1) applies only to refund claims of a duty of excise and interest; payments not constituting service tax or lawful excise levy are outside that bar and may be refunded. Judicial authorities (M/s Natraj and Venkat Associates; ITC Ltd.) recognise that excess realisations beyond what the statute permits are realisations outside the Act and thus not subject to the statutory limitation on excise refunds.
Manuals Service Tax
Whether deposit of service tax before rendering services will be covered under limitation of refund...
Show AI Summary
Limitation on service tax refunds: late claims are barred unless tax was paid under protest.
Refunds of amounts paid as service tax are governed by the statutory limitation provisions; where payments were credited to the service tax account and the claimant acknowledged applicability of the limitation rule, a refund claim filed after the limitation period is barred unless the tax was paid under protest.
Manuals Service Tax
Whether Appellate authority has empowered to increase the penalty? Whether Appellate authority can i...
Show AI Summary
Appellate authority power to increase penalties is limited; payment of tax and interest can justify mitigation of penalty.
Appellate authority does not have power to increase or impose a fresh penalty; payment of tax and interest that neutralises pecuniary advantage is relevant for mitigation, and taxpayer status and proportionality are material in assessing whether a revised penalty is unduly harsh under the statutory penalty framework.
Manuals Service Tax
Whether the penalty under section 78 of the Finance Act, 1994 can be reduced below the minimum limit...
Show AI Summary
Penalty minimums prohibited from reduction: statutory scheme prevents lowering prescribed service tax penalty through discretionary provisions.
Penalty under section 78 of the Finance Act, 1994 cannot be reduced below the statutory minimum by invoking section 80; a conjoint reading of the provisions shows no discretion to levy or reduce a penalty below the prescribed floor, and appellate bodies and tribunals cannot read such power into the statutory scheme.
Manuals Service Tax
Whether the penalty under Section 76 of the Finance Act, 1994 can be reduced below the limit prescri...
Show AI Summary
Penalty under Section 76 cannot be reduced below the statutory minimum; authority's discretion is confined to the prescribed range.
Section 76 penalty under the Finance Act, 1994 confines the authority to a legislatively prescribed minimum-to-maximum range; authorities lack power to reduce the penalty below the statutory minimum per day of default, and courts have rejected construing any additional discretion into the provision as that would amount to rewriting the statute.
Act Rules Service Tax
Whether Service tax paid by back calculations i.e. service tax separately not charged will be covere...
Show AI Summary
Service tax deposit obligations do not arise where tax was not invoiced or collected, limiting unjust enrichment claims.
Where no invoice was raised and no amount was specifically collected as service tax from recipients, the statutory duty to deposit such tax does not arise because there is no collected tax to be held on behalf of the Government, and absence of pass through means the legal condition for invoking unjust enrichment is not satisfied.
Act Rules Service Tax
Whether assessee is liable to pay collected service tax as per provision of Sec.73A even if his turn...
Show AI Summary
Deposit of collected service tax must be remitted even if small provider exempt; penalties apply for non-deposit.
Section 73A requires that service tax collected from customers be deposited with the Central Government even if the collector avails the small service provider exemption; tribunals have held that collection triggers an obligatory deposit and failure to deposit and to file returns attracts penal action and enforcement for non-compliance.
Manuals Service Tax
Whether ignorance of law can be a factor for not to revoke extended period of limitation?
Show AI Summary
Ignorance of law or illiteracy can undermine findings of willful suppression, affecting the validity of tax demand and penalties.
Administrative demands and penalties based on alleged willful suppression of taxable services require supporting record evidence and must correspond to allegations in the show cause notice; where the record does not substantiate suppression and the allegation was not made in the notice, the resultant service tax demand and penalties are not sustainable.
Manuals Service Tax
In what circumstances extended period of limitation is not enforceable? Whether SCN can be issued fo...
Show AI Summary
Extended limitation period: not available where assessee had bona fide belief or doubt about service tax liability.
Extended limitation cannot be invoked where the assessee had a bona fide belief that no service tax was payable, where bona fide doubt existed about chargeability, where the assessee voluntarily approached the department earlier, where the issue is one of legal interpretation creating genuine confusion, or where earlier favorable decisions were subsequently overruled without evidence of suppression.
Act Rules Service Tax
Whether show cause notice related to period beyond 18 months or 5 years as the case may be, is valid...
Show AI Summary
Limitation for recovery of service tax prevents collection for time barred periods but notice remains partly effective.
A show cause notice that includes periods beyond the statutory limitation does not become wholly invalid; the Department cannot recover tax for time barred periods, and the assessee may raise the limitation defence during proceedings. The same rule applies to notices extending beyond a shorter statutory limitation-the excess period yields no departmental entitlement to recovery but does not vitiate valid allegations within the limitation.
Manuals Service Tax
Whether it is mandatory to mention specific head / sub head of services in SCN in which demand of se...
Show AI Summary
Specific service allegation: tax liability cannot be confirmed unless the show-cause notice specifies the service head.
A show-cause notice must specifically identify the service head or sub-head relied upon; absent a precise allegation as to the applicable classification, tax liability cannot be confirmed, and alternative classifications suggested by the Commissioner without being pleaded in the notice render any demand unsustainable.

TMI Notes

Back

All TMI Notes

Showing Results for :
Reset Filters
No Records Found

TMI Notes

Home › TMI Notes › Income Tax › Act-Rules › Category › This
Back

All TMI Notes

whatsapp Join Channel
Showing Results for : Reset Filters
Income Tax

Comparison of Section 78 "Special provision for full value of consideration in certain cases." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

29 August, 2025

Contents
Acts
Rules & Regulations
Summary
Note

Note

-

Bookmark

Print

Print

Print Options

Section 78 Special provision for full value of consideration in certain cases.

Income-tax Act, 2025

At a Glance

These two texts are variants of Section/Clause 78 dealing with "Special provision for full value of consideration in certain cases" in relation to capital gains on transfer of land or building. Document 1 is presented as Section 78 of the Income-tax Act, 2025 (final Act text as per the source). Document 2 is Clause 78 from the Income Tax Bill, 2025 (Old Version). Both affect taxpayers transferring immovable property and the tax department in valuation/enforcement contexts. Effective date or enactment/decision date: Not stated in the document.

Background & Scope

Statutory hooks: both texts operate "for the purposes of section 72" (section on capital gains) and reference valuation procedures involving a Valuation Officer with application, mutatis mutandis, of provisions in section/sections 269(3) to (8). The provision targets transfers where consideration received/accruing is less than the stamp duty value (or "assessable" value in the Bill). The texts address when stamp duty value is to be taken as the full value of consideration, the conditions under which the date-of-agreement stamp duty value may be used, and the role of Valuation Officers. Definitions or additional explanations: Document 2 (Bill) contains an express definitional sub-section for "assessable"; Document 1 (Act) does not include that definition but refers to "stamp duty value". Neither document supplies an effective date.

Statutory Provision Mode

Text & Scope

Coverage and principal ingredients common to both texts:

  • Applicability: Transfer of a capital asset consisting of land or building or both where consideration received or accruing is less than the stamp duty (or assessable) value.
  • Primary rule: In such cases, the stamp duty value is to be deemed the full value of consideration for the purposes of section 72, subject to specific conditions.
  • Alternate for date-of-agreement: The stamp duty value on the date of agreement may be taken as the full value if (i) the agreement date fixing consideration and registration date differ; and (ii) part or full consideration is received on or before the agreement date in prescribed/defined electronic or banking modes.
  • 110% rule: If the stamp duty value does not exceed 110% of the consideration received or accruing, then the actual consideration shall be treated as the full value of consideration.
  • Valuation Officer route: Assessing Officer may refer valuation to a Valuation Officer where the assessee claims stamp duty value exceeds fair market value and the stamp duty value has not been contested in appeal/revision or before any other authority or court; if the Valuation Officer's value exceeds stamp duty value the stamp duty value shall be taken as full consideration.

Interpretation

Legislative intent indicated by the text: The provision is designed to curb undervaluation of immovable property consideration for capital gains purposes by deeming the stamp duty value as the taxable consideration where consideration declared is lower than the stamp duty value. The inclusion of a specified payments condition for taking date-of-agreement stamp duty value indicates intent to prevent cash/undeclared pre-agreement payments from defeating valuation rules. The 110% tolerance provision shows a legislative balance to avoid deeming stamp duty value where stamp duty value is only marginally higher than consideration.

Exceptions/Provisos

Carve-outs and conditions stated in the texts:

  • Date-of-agreement exception (subject to payment mode condition and non-coincidence of registration and agreement dates).

  • 110% safe-harbour where stamp duty value <= 110% of consideration - consideration is recognized as full value.

  • Valuation Officer reference permitted only where the assessee claims stamp duty value exceeds fair market value and the stamp duty value has not been contested in appeal/revision or before any authority/court/High Court.

Illustrations

  • Example 1 - Significant undervaluation: Land sold for INR 60 lakh, stamp duty value INR 90 lakh. Given consideration < stamp duty value, stamp duty value will be deemed full value for section 72 unless conditions for date-of-agreement apply or Valuation Officer determines a higher value. (Numbers illustrative; Not stated in the document as examples.)

  • Example 2 - Within 110% tolerance: Land sold for INR 90 lakh, stamp duty value INR 98 lakh (108.9% of consideration). As stamp duty value does not exceed 110% of consideration, the actual consideration INR 90 lakh is deemed full value for section 72.

  • Example 3 - Date-of-agreement payment: Agreement fixes consideration on 1 Jan, registration on 1 Feb; part payment made on or before 1 Jan via specified banking/online mode - stamp duty value on 1 Jan may be taken as full value (subject to definition/application of payment modes in the particular text).

Interplay

Both texts expressly invoke section 72 and the valuation procedure akin to section 269(3)-(8) (Bill uses "sections"; Act uses "section"). Document 2 also introduces and defines "assessable" (the value an authority would adopt for stamp duty) which ties stamp duty assessments to the deeming provision. Document 1 omits that definition and consistently uses "stamp duty value". No other Rules/Notifications/Circulars are cited in either document. Any broader interplay with state stamp laws or other central provisions is Not stated in the document.

What Changed - Differences Between the Two Texts

Topic Clause 78 of the Income Tax Bill, 2025 (Old Version) Section 78 of the Income-tax Act, 2025
Payment modes for date-of-agreement rule Payment modes expressly listed: "account payee cheque or account payee bank draft or electronic clearing system through a bank account or any other electronic mode, as prescribed." Refers to "specified banking or online mode" as defined in section 66(32).
Definition of stamp/assessable value Contains sub-section (3) defining "assessable" as value an authority would adopt/assess for stamp duty purposes. No corresponding definitional sub-section; text uses "stamp duty value" throughout and omits the "assessable" definition.
Ordering of Valuation Officer outcome provision Valuation Officer outcome is sub-section (4). Valuation Officer outcome appears as sub-section (3) (reflecting omission of Bill's sub-sec (3)).
Minor drafting variance References "sections 269(3) to (8)". References "section 269(3) to (8)".

Practical Implications of Each Change

  • Payment-mode standardization (Bill -> Act): The Bill's explicit list of payment instruments is replaced in the Act by a cross-reference to "specified banking or online mode" as defined in section 66(32). Practical impact: taxpayers and advisors must consult section 66(32) to determine eligible modes; this may broaden or narrow covered modes depending on that definition. The cross-reference centralizes the definition and allows consistency across the statute, but also requires cross-reference checking. Document: section 66(32) content is Not stated in the document.
  • Removal of "assessable" definition: The Bill's express definitional sub-section clarifying "assessable" is omitted in the Act. Practical impact: ambiguity may arise about whether "stamp duty value" in the Act should be read as the same "assessable" concept in the Bill (i.e., the value a stamp authority would adopt). The Act's silence means reliance on ordinary meaning of "stamp duty value" or other statutory definitions; users must look elsewhere in statute or state stamp laws. Document: any residual legislative intent or how to treat missing definition is Not stated in the document.
  • Valuation route unchanged substantively: Both texts permit AO reference to Valuation Officer in specified circumstances, and in both the stamp duty value prevails if Valuation Officer determines a higher value. Practical impact: the enforcement mechanics and thresholds remain materially similar; taxpayers retain the opportunity to challenge via Valuation Officer provided conditions are met.
  • 110% tolerance clause retained: No substantive change; practical implication is continued availability of a cushion to prevent deeming where stamp duty value modestly exceeds consideration.

Practical Implications

  • Compliance and risk areas: Where consideration declared is below stamp duty value, the stamp duty value is likely to be treated as full consideration for capital gains. Taxpayers disposing of land/buildings should ensure documented payment through the modes required by section 66(32) or the corresponding prescribed modes (Bill) where they wish date-of-agreement stamp duty value to be used. Risk of adjustment on assessment is present where stamp duty value exceeds declared consideration.
  • Record-keeping/evidence: Preserve authenticated proof of payment in the specified modes, the agreement and registration dates, stamp duty valuation records, any prior appeals/revisions concerning stamp duty value, and material filed in any proceedings before other authorities/courts. If relying on Valuation Officer referral, retain contemporaneous market evidence as the Bill/Act contemplates assessee claims about fair market value.

Key Takeaways

  • Both Bill and Act deem stamp duty value to be full value of consideration when declared consideration is lower, subject to conditions and a 110% safe-harbour.
  • The Act replaces the Bill's explicit list of permissible payment instruments with a cross-reference to "specified banking or online mode" u/s 66(32), requiring cross-reference lookup.
  • The Bill contained an explicit definition of "assessable" (for stamp duty purposes); the Act omits this definitional sub-section, potentially affecting interpretation of "stamp duty value."
  • Valuation Officer referral mechanism and outcome rule remain materially consistent in both texts: where VO determines value exceeding stamp duty value, stamp duty value is nonetheless taken as full consideration.
  • Taxpayers should maintain payment and valuation records, and be aware that modest differentials (<=10%) between stamp duty value and consideration will likely preserve the declared consideration as taxable amount.

Full Text:

Section 78 Special provision for full value of consideration in certain cases.

Topics

Acts Income Tax
Next ➔