Mr Pragalanadane from the ERI Scheme Moggappair, West Chennai, sold a property in Chennai for Rs 94 lakh during AY 2017-18. However, the guidance value for stamp duty purposes listed the property at Rs 1.93 crore.
So even though Pragalanadane paid stamp duty on the Rs 1.93 crore value to the Tamil Nadu government, he only received Rs 94 lakh from the buyer in his bank account. This discrepancy raised a red flag with the Income Tax Department system and subsequently a Section 50C tax notice was sent to him to tax the differential amount of Rs 99 lakh (Rs 1.93 crore-Rs 94 lakh).
