Neutral impactEconomy
Can one co-owner be taxed alone on property value and stamp duty difference? What ITAT says
Mint 1 hr ago·3 Sept 2026, 2:26 pm
The ITAT has ruled that a co-owner can be taxed on the difference between the actual purchase price and the stamp duty value of a property, even if the other co-owner is not. In this case, the taxpayer was held liable for income tax on the ₹34.8 lakh gap, as the property was purchased in 2017.
This decision matters to investors as it clarifies the tax treatment of jointly held properties. It ensures that the tax liability is attributed to the individual who is being taxed, rather than being split equally or shared based on ownership percentages. This ruling sets a precedent for how similar cases will be handled in the future.
Investors should watch for further appeals to the higher courts, which could potentially alter the ITAT's interpretation. The outcome of these appeals will determine the long-term tax implications for co-owners of property in India.
Excerpt from Mint
The ITAT delivered a significant ruling in the case of a Mumbai taxpayer who, in 2017, purchased a flat jointly with his wife in Chembur. The actual consideration paid for the property was ₹ 60 lakh, while its stamp-duty value was ₹ 94.8 lakh, creating a gap of around ₹ 34.8 lakh. In an important ruling, the Mumbai…Read the original at Mint
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