Full value of Consideration - Income Tax - Ready Reckoner - Income Tax

FULL VALUE OF CONSIDERATION The expression full value means the whole price without any deduction whatsoever. The consideration for the transfer of the capital asset is what the transferor receives in lieu of the asset he parts with, in money or any other mode Note: In case of non- resident assessee, any gains arising on account of appreciation of rupee against a foreign company at the time of redemption of rupee denominated bond of an Indian company subscribed by him, shall be ignored for the purposes of computation of full value of consideration u/s 48 . [Fifth proviso to Sec 48 ] CASES WHEN FULL VALUE OF CONSIDERATION IS DETERMINED ON DEEMED BASIS: Section Situations The amount which is taken as Full value of consideration Fourth proviso to section 48 Shares/ debentures allotted by an employer to an employee under notified Employees Stock Option Plan and such shares etc. are gifted by the concerned employee to any person Market value at the time of gift 50C Transfer of land and/or building Value declared by the assessee or Value as assessed by Stamp valuation authority whichever is HIGHER. 50CA Transfer of share other than quoted share Where consideration for transfer of unquoted shares is less than the Fair Market Value, the Fair Market Value (so determined in prescribed manner) shall be deemed to be the full value of consideration 50D Transfer of capital asset where consideration is not ascertainable or cannot be determined. Fair market value on the date of transfer. 45(1A) Money or other asset received under any insurance from an insurer due to damage or destruction of a capital asset Value of money or the fair market value of the asset on the date of receipt 45(2) Conversion of capital asset into stock in trade Fair market value of the capital asset on the date of conversion 45(3) Transfer of capital asset by a partner/ member to the firm/ AOP/ BOI as his capital contribution Amount recorded in the books of account of the firm/ AOP/ BOI as the value of the capital asset 45(4) Transfer of capital asset by a firm/ AOP/ BOI to its partners/ members on its dissolution Fair market value of such asset on the date of transfer. 45(5A) Transfer of a capital asset, being land or building or both, under a specified agreement by an individual or HUF The Stamp Duty value, on the date of issue of the said certificate, of his share, being land or building or both in the project, as increased by the consideration received in cash shall be deemed to be the full value of consideration 46(2) Shareholders receiving assets from the liquidator on the liquidation of the company Market value of the assets on the date of distribution minus amount assessed as deemed dividend u/s 2(22)(e) Note: Adequacy or Inadequacy of Consideration is not a relevant factor for the purpose of determining the full value of consideration. It does not make any difference whether full value of consideration is received in totality or, in installments during the previous year, since in both cases full value of consideration due will be taken for the purpose of calculation of computing capital gains. In case of exchange, the full value of consideration will be the market value of the property transferred.