Section-78: Special provision for full value of consideration in certain cases

Section-78 : Special provision for full value of consideration in certain cases

Learn to understand the section-78 as it is, it's help and useful links to follow.

Here onwards, "Act" refers to "Income Tax Act 2025"

1. Section-78 as per act

If the consideration received or accruing from the transfer of a capital asset, being land or building or both, is less than the stamp duty value, then, for the purposes of section 72, the stamp duty value shall be deemed to be the full value of the consideration received or accruing as a result of such transfer, subject to the following:––
1. the stamp duty value on the date of agreement may be taken as the full value of consideration, if––
  1. the date of the agreement fixing the consideration and the date of registration for the transfer of the capital asset are not the same; and
  2. part or full consideration is received on or before the date of the agreement by an account payee cheque or account payee bank draft or electronic clearing system through a bank account or any other electronic mode, as prescribed;
2. if the stamp duty value does not exceed 110% of the consideration received or accruing, such consideration shall be deemed to be the full value of the consideration for section 72.
Without prejudice to the provisions of sub-section (1), the Assessing Officer may refer the valuation of the capital asset to a Valuation Officer, and the provisions of sections 269(3) to (8), shall, with necessary modifications, apply in relation to such reference, where––
1. the assessee claims that the stamp duty value exceeds the fair market value of the property as on the date of transfer; and
2. the stamp duty value has not been disputed in any appeal or revision or no reference has been made before any other authority, court or the High Court.
In this section, "assessable" means the value which any authority of the Government would have adopted or assessed as if it were referred to such authority for the purposes of payment of stamp duty, regardless of anything to the contrary contained in any other law in force.
If the value determined by the Valuation Officer on a reference made under sub-section (2) exceeds the stamp duty value, such stamp duty value shall be taken as the full value of consideration.