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CA Intermediate · Taxation · Income from Other Sources

On 10 August 2026, Mr. Rohan Mehta, a resident individual, bought a plot of land as a capital asset for ₹17,00,000, paid entirely through bank transfer. The stamp duty value on the date of registration was ₹20,00,000. The seller is not a relative and no agreement date differs from the registration date. What is the amount taxable in Mr. Mehta's hands as income from other sources?

₹3,00,000 is taxable. The shortfall between the stamp duty value of ₹20,00,000 and the price of ₹17,00,000 exceeds the higher of ₹50,000 and 10% of the price (₹1,70,000), so the whole difference becomes income from other sources.

  1. A₹1,30,000
  2. B₹2,50,000
  3. CNil
  4. D₹3,00,000Correct

Explanation

The difference between the stamp duty value and the consideration is ₹3,00,000. The tolerance limit is the higher of ₹50,000 and 10% of the consideration, which is ₹1,70,000. The difference exceeds this limit, so the entire difference of ₹3,00,000 is taxable. The excess over the limit (₹1,30,000) is wrong because the full difference is taxed once the limit is crossed.

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