A property dealer sells a flat held as stock-in-trade to an unrelated individual, who buys it as his residence, for ₹2.60 crore. The dealer's cost is ₹2 crore and the stamp duty value on the date of…

Under section 53 of the Income-tax Act, 2025 the stamp duty value of land or building held otherwise than as a capital asset is the full value of consideration unless it is within 110% of the price; ₹3 crore exceeds ₹2.86 crore, so the dealer has ₹1 crore of business income, not capital gain. For the buyer, section 92(2)(m) taxes the ₹40 lakh excess of stamp duty value over price as income from other sources because it exceeds the higher of ₹50,000 and 10% of the price.