Mrs. Vasudha purchased a residential house from her friend on 12th May, 2023 for ₹ 45 lakh. The stamp duty valuation of the house on this date was ₹ 52 lakh. She sold this house property on 12th March, 2024 for ₹ 55 lakh

Answer 5(a) Asset acquired for less than stamp duty valuation Where an immovable property has been acquired from any person for a consideration which is less than Stamp duty Valuation and the difference exceeds 10% of consideration or ₹ 50,000 (whichever is higher), the difference will be taxed as income from other sources under section 56(2)(x) of the Income Tax Act, 1961. Accordingly, ₹ 7 lakhs (₹ 52 lakhs - ₹ 45 lakhs) will be assessed as income from other sources in the hands of Mrs. Vasudha for the PY 2024-25. Now, the actual cost of the house will be treated as ₹ 52 lakhs. Subsequently, when the house is sold, the cost of acquisition will be treated as ₹ 52 lakhs. Thus, for the sale made on 12th March, 2024, ₹ 3 lakhs (₹ 55 lakhs - ₹ 52 lakhs) will be assessed as short-term capital gains for the PY 2024-25. Her total Income shall be 10 lakhs [7 lakhs + 3 lakhs] for AY 2024-25 and tax liability under old system shall be ₹ 1,17,000 and u/s 115BAC shall be ₹ 62,400