Taxability of Real Estate transactions

Understatement of
consideration
• Section 52(2):
FMV of the asset transferred exceeds the stated
consideration by 15% than FMV be taken as the full
value of consideration for the transfer.
• K.P. Verghese V. ITO.(1981) 131 ITR 597 (SC)
Onus on the revenue to show that the FMV of the
asset exceeds the stated consideration but also
that the consideration had been understated and
the assessee had actually received more than what
was declared by him.
• Section 52 deleted from the statute by The Finance
Act,1987