Section 43CA provides that in case of transfer of land or building (other than a capital asset), stamp duty value shall be taken as the full value of consideration for the purposes of computing business profits, if stamp duty value is more than actual consideration. The said section also provides that where the date of agreement fixing the value of consideration for transfer and the date of registration are not the same, the stamp duty value on the date of the agreement shall be taken (if the amount of consideration or a part thereof has been received by any mode other than cash on or before the date of agreement).
A proviso has been inserted in section 43CA(1) (with effect from the assessment year 2019-20) to provide that where the stamp duty value does not exceed 105 per cent of the consideration received (or accruing as a result of the transfer), the consideration so received (or accruing as a result of the transfer) shall be deemed to be the full value of the consideration. In other words, section 43CA will be applicable only in those cases, where stamp duty value is more than 105% of actual consideration. Further, section 43CA(4) has been amended (with effect from the assessment year 2019-20) to provide that where the date of agreement fixing the value of consideration for transfer of the asset and the date of registration of such transfer are not the same, the stamp duty value on the date of agreement shall be taken where the amount of consideration (or a part thereof) has been received by way of an account-payee cheque/draft or by use of electronic clearing system through a bank account, on or before the date of agreement for transfer of the asset.