Capital Gains / Income from Other Source pertaining to Transfer of Tenancy Right, Income Tax

[Aliasgar Tambawala]

As per S/50C and/or S/56 (2) (vii) (b) of the Income Tax Act, 1961 - If Stamp duty value of an immovable property is higher than the Agreement value than For Seller - The stamp duty value is to be considered as the consideration value.

Similarly, in such a case as per S/69 of the Income Tax Act, 1961 - The difference between the Stamp duty Value and the Agreement Value would be considered as Income from Other Sources in respect of the Buyer.

Kindly provide your opinion as to:

1) Whether the above understanding is correct?

2) Whether the above understanding would be applicable in case of Transfer of Tenancy? - i.e. Whether Immovable Property would cover Transfer of Tenancy?