The existing provisions of section 50C provide that where the consideration received or accruing as a result of the transfer of a capital asset, being land or building or both, is less than the value adopted or assessed by a stamp valuation  authority, the value so adopted or assessed is deemed to be the full value of the consideration for computing capital gain.

Present scope of the provisions does not specifically include transactions which are not registered with stamp duty valuation authority, and executed through agreement to sell or power of attorney. Cases were happening that a document is not lodged for registration and therefore may not be presented for assessment by the stamp valuation authorities. Tribunals took a view that if the document is not registered or not  assessed under the relevant stamp duty laws, the provisions of section 50C are  not applicable. 

To avoid such situations, therefore, now it is being provided that in such transactions whether stamp duty is assessed or assessable, the provisions of section 50C would apply.

This amendment will take effect from 1st October, 2009 and shall accordingly apply in relation to transactions undertaken on or after such date.

It is explained that  the expression “assessable” means the price which the stamp valuation authority would have adopted or assessed, if it were referred to such authority for the purposes of the payment of stamp duty.

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