Section 50C – Option for adopting stamp duty value on date of agreement – Amendment to be treated as clarificatory in nature


In relation to computing capital gains tax liability on transfer of land or building, amendment made via the Finance Act, 2016 gives an option for considering the stamp duty value as on date of agreement instead of stamp duty value on date of registration, subject to part or whole of the consideration being received by way of account payee cheque or bank draft or ECS through bank account on or before the date of agreement. The said amendment in section 50C is in line with the similar provision already existing in section 43CA. This provision was, therefore, long due to be incorporated in section 50C. The incorporation of similar provision in section 50C has alleviated the genuine hardship faced by the taxpayers.


It is suggested that the amendment may be treated as clarificatory in nature since it conveys the real intent of law to ensure equity in tax treatment vis-à-vis section 43CA. Alternatively, a circular may be issued to achieve the same result in pending assessments or appeals.

Source-  ICAI Pre-Budget Memorandum–2018 (Direct Taxes and International Tax)

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One Comment

  1. vswami says:


    Quite a logical and sensible suggestion.

    To carry it forward, by the same token of reasoning, suitable clarifications might have to be issued , bearing in mind the implications of the amendments of inter alia sec 55 ; made in order to give effect to the change of “BASE YEAR” to 2001-02 , and the ongoing resultant controversies, unwarranted though, that cry aloud to be set at rest.

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September 2021