Fact-check notes
Last fact-checked: 2026-05-28
Tax caution: AY 2026-27 covers FY 2025-26 and continues under the Income-tax Act, 1961. Tax Year 2026-27 references should be verified against the active 2025 Act utilities before filing.
Use this page as preparation guidance. A professional should verify the active law year, notification, portal utility and source records before filing or taking a tax position.
What this covers
Section 50C can increase a seller’s capital gains when stamp-duty value is higher than actual sale price beyond the safe harbour.
- If stamp-duty value is within safe harbour, actual consideration may be accepted.
- When the gap is larger, stamp-duty value can be deemed sale consideration.
- The buyer may also face Section 56(2)(x) issues.
- A valuation officer reference can help where circle rate is unrealistic.
Who this is for
- Distress sale below circle rate.
- NRI property sale.
- Family sale at low value.
- Notice for under-reported capital gains.
Documents and data to verify
- Sale deed and stamp-duty valuation.
- Payment proof.
- Valuation report if disputed.
- Purchase/improvement records.
Common mistakes to avoid
- Computing gains only on cash received.
- Ignoring buyer-side implications.
- No valuation challenge evidence.
- Missing safe-harbour calculation.
How to proceed
- Confirm the applicable financial year, assessment year, taxpayer type, state and portal status before acting.
- Reconcile portal data with books, AIS/Form 26AS, GST returns, contracts, invoices, bank statements and source documents.
- Prepare a written computation, checklist, filing note or response with assumptions clearly stated.
- Download acknowledgements, challans, workings and evidence after filing or submission.
FAQs
Can WorkIndex help with this?
Yes. Post the facts and documents; relevant experts can quote for filing, advisory, reconciliation, registration, appeal support or ongoing compliance.
Is this page final legal advice?
No. Use it to prepare. A professional should verify the active law year, notification, portal utility and records before filing or taking a tax position.
What should I mention while posting?
Mention the year, state, form, deadline, amount involved, documents available, portal status and whether you need filing, correction, advisory or representation.