What is Full Value of Consideration under Section 48 of Income Tax

The meaning of the word “full” means entire or complete. The expression “full value” means the whole price without any deduction.

  • Full value of consideration means consideration received or receivable by transfer in lieu of asset, which he has transferred. Such consideration may be received in cash or in kind.
  • The full value of consideration is not considered as market value of asset

Even if full value of consideration is received in installment in different year, the entire value of consideration has been taken into account for computing the capital gain, which becomes chargeable in the year of transfer.

How to Find Out Expenditure on Transfer

The Expression “expenditure incurred wholly and exclusively in connection with such transfer “means expenditure incurred which is necessary to affect the transfer. Ex. Cost of stamp, travelling expenses, registration fee

One should keep note the following points.

  • Vague claim for expenses is not allowed
  • Expenditure in connection with transfer need not necessarily have been incurred prior to passing of title.
  • If amount is subject matter of other head then amount can’t be claimed under sec.48

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