What is Full value of consideration?

Section 50 D: Full value of consideration is the consideration received or receivable by the transferor in lieu of assets, which he has transferred. Such consideration may be received in cash or in kind. If it is received in kind, then fair market value ('FMV"') of such assets shall be taken as full value of consideration.

However, in the following cases "full value of the consideration" shall be determined on notional basis as per the relevant provisions of the Income-tax Act, 1961: In case of transfer of land or building, if sale consideration declared in the conveyance deed is less than the stamp duty value under Section 50 C, the value adopted or assessed or assessable by the Stamp Valuation Authority shall be deemed to be the full value of consideration.

However, no such adjustment is required to be made if value adopted for stamp duty purposes does not exceed 105% of the sale consideration.

Note: Where the date of agreement (fixing the amount of consideration) and the date of registration for the transfer of property are not the same, the value adopted or assessed or assessable by Stamp Valuation Authority on the date of agreement may be taken as full value of consideration.