Income Tax Act, 2025
Section 7: Ins. by Act 28 of 2016, s. 31 ( w.e.f. 12017).
7. Ins. by Act 28 of 2016, s. 31 ( w.e.f. 12017).
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Provided further that the first proviso shall apply only in a case where the amount of consideration, or
a part thereof, has been received by way of an account payee cheque or account payee bank draft or by
use of electronic clearing system through a bank account, on or before the date of the agreement for
transfer.]
1[Provided also that where the value adopted or assessed or assessable by the stamp valuation
authority does not exceed one hundred and five per cent. of the consideration received or accruing as a
result of the transfer, the consideration so received or accruing as a result of the transfer shall, for the
purposes of section 48, be deemed to be the full value of the consideration.]
(2) Without prejudice to the provisions of sub-section (1), where—
(a) the assessee claims before any Assessing Officer that the value adopted 2[or assessed or
assessable] by the stamp valuation authority under sub-section (1) exceeds the fair market value of
the property as on the date of transfer;
(b) the value so adopted 2[or assessed or assessable] by the stamp valuation authority under
sub-section (1) has not been disputed in any appeal or revision or no reference has been made before
any other authority, court or the High Court,
the Assessing Officer may refer the valuation of the capital asset to a Valuation Officer and where any
such reference is made, the provisions of sub-sections (2), (3), (4), (5) and (6) of section 16A, clause (i) of
sub-section (1) and sub-sections (6) and (7) of section 23A, sub-section (5) of section 24, section 34AA,
section 35 and section 37 of the Wealth-tax Act, 1957 (27 of 1957), shall, with necessary modifications,
apply in relation to such reference as they apply in relation to a reference made by the Assessing Officer
under sub-section (1) of section 16A of that Act.
3[Explanation 1.]—For the purposes of this section, “Valuation Officer” shall have the same meaning
as in clause (r) of section 2 of the Wealth-tax Act, 1957 (27 of 1957).
4[Explanation 2.—For the purposes of this section, the expression “assessable” means the price which
the stamp valuation authority would have, notwithstanding anything to the contrary contained in any other
law for the time being in force, adopted or assessed, if it were referred to such authority for the purposes
of the payment of stamp duty.]
(3) Subject to the provisions contained in sub-section (2), where the value ascertained under
sub-section (2) exceeds the value adopted 2[or assessed or assessable] by the stamp valuation authority
referred to in sub-section (1), the value so adopted 2[or assessed or assessable] by such authority shall be
taken as the full value of the consideration received or accruing as a result of the transfer.]
5[50CA. Special provision for full value of consideration for transfer of share other than quoted
share.—(1) Where the consideration received or accruing as a result of the transfer by an assessee of a
capital asset, being share of a company other than a quoted share, is less than the fair market value of such
share determined in such manner as may be prescribed, the value so determined shall, for the purposes of
section 48, be deemed to be the full value of consideration received or accruing as a result of such transfer.
Explanation.—For the purposes of this section, “quoted share” means the share quoted on any
recognised stock exchange with regularity from time to time, where the quotation of such share is based
on current transaction made in the ordinary course of business.]
6[50D. Fair market value deemed to be full value of consideration in certain cases. —Where the
consideration received or accruing as a result of the transfer of a capital asset by an assessee is not
ascertainable or cannot be determined, then, for the purpose of computing income chargeable to tax as
capital gains, the fair market value of the said asset on the date of transfer shall be deemed to be the full
value of the consideration received or accruing as a result of such transfer.]
Without prejudice to the provisions of sub-section
the assessee claims before any Assessing Officer that the value adopted 2[or assessed or
assessable] by the stamp valuation authority under sub-section
exceeds the fair market value of
the property as on the date of transfer;
the value so adopted 2[or assessed or assessable] by the stamp valuation authority under
sub-section
has not been disputed in any appeal or revision or no reference has been made before
any other authority, court or the High Court,
the Assessing Officer may refer the valuation of the capital asset to a Valuation Officer and where any
such reference is made, the provisions of sub-sections
and
of section 16A, clause
of
sub-section
and sub-sections
and
of section 23A, sub-section
of section 24, section 34AA,
section 35 and section 37 of the Wealth-tax Act, 1957 (27 of 1957), shall, with necessary modifications,
apply in relation to such reference as they apply in relation to a reference made by the Assessing Officer
under sub-section
of section 16A of that Act.
3[Explanation 1.]—For the purposes of this section, “Valuation Officer” shall have the same meaning
as in clause
of section 2 of the Wealth-tax Act, 1957 (27 of 1957).
4[Explanation 2.—For the purposes of this section, the expression “assessable” means the price which
the stamp valuation authority would have, notwithstanding anything to the contrary contained in any other
law for the time being in force, adopted or assessed, if it were referred to such authority for the purposes
of the payment of stamp duty.]
Subject to the provisions contained in sub-section
exceeds the value adopted 2[or assessed or assessable] by the stamp valuation authority
referred to in sub-section
Where the consideration received or accruing as a result of the transfer by an assessee of a
capital asset, being share of a company other than a quoted share, is less than the fair market value of such
share determined in such manner as may be prescribed, the value so determined shall, for the purposes of
section 48, be deemed to be the full value of consideration received or accruing as a result of such transfer.
Explanation.—For the purposes of this section, “quoted share” means the share quoted on any
recognised stock exchange with regularity from time to time, where the quotation of such share is based
on current transaction made in the ordinary course of business.]
6[50D. Fair market value deemed to be full value of consideration in certain cases. —Where the
consideration received or accruing as a result of the transfer of a capital asset by an assessee is not
ascertainable or cannot be determined, then, for the purpose of computing income chargeable to tax as
capital gains, the fair market value of the said asset on the date of transfer shall be deemed to be the full
value of the consideration received or accruing as a result of such transfer.]