INCOME TAX3 Sept 2026
Can one co-owner be taxed alone on property value and stamp duty difference? What ITAT says | Mint
The Mumbai ITAT ruled that the entire difference between purchase price and stamp-duty value cannot be added to just one co-owner's income. This helps joint buyers like a husband and wife. The tax department must tax each person only on their share of the gap. If you face such an addition, check your ownership share and challenge it.
Key Statutory Highlights
- A Mumbai couple bought a flat in 2017 for ₹60 lakh while its stamp-duty value was ₹94.8 lakh, leaving a gap of about ₹34.8 lakh.
- The ITAT said the tax officer was wrong to add the entire difference only to the husband's income because the flat was jointly owned.
- The husband's share in the property was 41.08% and his wife's share was 58.92%.
Actionable Advice for Taxpayers / Founders:If you receive an income-tax notice adding the full stamp-duty difference in a jointly bought property, check the ownership shares in the sale deed and consider challenging the addition before the tax authorities or appellate tribunal.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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