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CS Executive · Tax Laws and Practice · Income from Other Sources

Mr. Rohan Gupta buys a residential plot for a consideration of Rs. 40,00,000 under an agreement. The stamp duty value on the relevant date is Rs. 43,00,000. The seller is not a relative and no exemption applies. Under section 92(2)(m)(ii)(B) of the Income-tax Act, 2025, what is the amount taxable in Rohan's hands?

Nothing is taxable. The shortfall of consideration against stamp duty value is Rs. 3,00,000, but it is taxed only if it exceeds the higher of Rs. 50,000 or 10% of consideration, which is Rs. 4,00,000. Since the excess is below that, the amount is nil.

  1. ARs. 3,00,000
  2. BRs. 43,00,000
  3. CRs. 2,50,000
  4. DNilCorrect

Explanation

Excess of stamp duty value over consideration = 43,00,000 - 40,00,000 = Rs. 3,00,000. It is taxable only if it exceeds the higher of Rs. 50,000 and 10% of consideration (Rs. 4,00,000). Higher is Rs. 4,00,000, and 3,00,000 does not exceed it, so nothing is taxable. Rs. 3,00,000 is wrong because the threshold is not crossed.

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