My client purchased a ‘Residential property’ in FY 23-24 by paying Total considerarion money equal to 50 L by cheque. The Stamp duty valuation of the property was 58 L. So, stamp duty was paid on value 58L. Thus the difference between consideration amount and Stamp duty valuation is 8L which is more than 10% of consideration amount. The question is as follows-
1- Is my client liable to declare in Return an income of 8L under section 56(2)(x) of I.T. Act , under head ‘ Income from other sources’ of Income. one Expert advised positively for declaration of income equal to 8L by arguing that the difference between consideration amount and Stamp valuation is more than 10% of consideration amount. The other Expert advised negatively , on the basis of using section 43CA of I.T. Act , that since the property is of ‘ ‘Residential naure’ and the difference 8L between the consideration amount and stamp value is less than 20% of consideration amount . I am in doubt. Pl. be kind to give your opinion so that correct return may be filed for the client. Thanks. Dated 23.05.2024.