If you agree to buy a property years before it is registered, the stamp duty value may increase by the time of registration. But does this higher value automatically decide how much tax the buyer has to pay?
The Kolkata bench of the Income Tax Appellate Tribunal (ITAT) recently examined this issue, where a property was agreed to be purchased in 2021, but the registered conveyance deed was executed in 2023. The Assessing Officer (AO) had treated the difference between the property's stamp duty value and the purchase consideration as taxable income in the buyer's hands.
