Clause 17 requires the reporting of the transfer of any land or building or both during the previous year for a consideration less than the value adopted or assessed or assessable by any authority of a State Government referred to in Section 43CA or Section 50C.
The reporting obligation under Clause 17 arises when the following conditions are satisfied:
There is a transfer of land or building or both by the assessee during the previous year. It does not matter whether such land or building or both is held as a capital asset or stock in trade, as Clause 17 refers to both Section 50C and Section 43CA; and
The transfer is for consideration, and such consideration is less than the stamp duty value.
If all the conditions are satisfied, it becomes necessary for the tax auditor to report the transaction under Clause 17. It is important to note that neither Section 43CA nor Section 50C excludes properties located outside India from their ambit. Consequently, if a property situated outside India is transferred, it must be reported in Clause 17. The Form 3CA-3CB/3CD utility also allows reporting of property details outside India.