Response

The buyer of a property is required by the Registration Act of 1908 to pay stamp duty at the time of registration.

The ownership of a property is transferred in the name of the new buyer from the old in the government’s records through the registration process.

The buyer will not be able to show his ownership of the item in a court of law unless the property is registered in his name.

Stamp duty is a charge levied on your property documents when you sell or transfer your home.

It is levied at various rates across India. Currently, stamp duty is calculated based on the greatest potential FSI transferred from the landowner to the developer.

This value is significantly greater than the previous value. This value includes the notional value of the FSI, which is not actually available with the landowner at the time of the development agreement but could be available to the developer in the future, and which the developer would have to purchase from local sanctioning authorities or the market at his own expense.

The FSI available with the landowner at the time of the development agreement is merely the basic FSI, and the developer might use the maximum potential FSI at a later stage after loading the FSIs/TDR obtained from local sanctioning agencies or the market.

It means that there is no maximum potential FSI available at the time of the development agreement, but a stamp duty valuation is done, which is a notional valuation.

Reference: INCOME TAX ACT,
As per section 50C of the income tax act, ÒSpecial provision for full value of consideration in certain cases.Ñ (1) Where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed by any authority of a State Government (hereafter in this section referred to as the Òstamp valuation authorityÓ) for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed shall, for the purposes of section 48, be deemed to be the full value of the consideration received or accruing as a result of such transferÓ. means stamp duty value should be considered as sale consideration in hands of landowner. same logic is applicable in case of 43CA as follows:

Section 43CA. Special provision for full value of consideration for transfer of assets other than capital assets in certain cases.Ñ(1) Where the consideration received or accruing as a result of the transfer by an assessee of an asset (other than a capital asset), being land or building or both, is less than the value adopted or assessed or assessable by any authority of a State Government for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed or assessable shall, for the purposes of computing profits and gains from transfer of such asset, be deemed to be the full value of the consideration received or accruing as a result of such transfer.

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LAWAYZ-2023-860