As per the income tax act 1961 any income received by the way of gift other person will be a taxable in the hands of receiver, But clause X of Section 56(2) will describes the limit for such gift received for the purpose of taxability, for Income received without consideration or income received with an inadequate consideration.

Income Received with an inadequate consideration:


  1. Assessee is having the dispute for the Stamp duty Value of an immovable property, what will be the value to be considered for the taxable purpose.

    A. Based on the Sec 50 C the Assessing officer may direct for valuation to a valuation officer and based on such report the assessing officer will determine the value of such property.

  2. Mr . A has got into agreement with the seller on 06/01/2018 and got the registration of the property on 01/06/2018 , What will be the stamp duty Value?

    The Stamp duty Value will be the date of the agreement entered i.e on 06/01/2018 .

Example :

  • Q.A has acquired an immovable property for Rs.15,000/- whose actual stamp duty value is Rs.61,000/- what is the taxable value in the hands of the receiver.

    A.Mr A has acquired an immovable property for an inadequate consideration, i.e which is less than the stamp duty value so the difference of Stamp duty and value paid will be the taxable value on which the tax should be charged. i.e Rs.46,000/- will be taxable in the hands of Mr. A

Declaration :

“The information contained herein is only for informational purpose and should not be considered for any particular instance or individual or entity. We have obtained information from publicly available sources, there can be no guarantee that such information is accurate as of the date it is received, or it will continue to be accurate in future. No one should act on such information without obtaining professional advice after thorough examination of particular situation.”

Prepared By

Sandeep Y

Reviewed By


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Ankit C Shetty