mumbai property buyers may have much to cheer about if a recommendation by the incometax it simplification committee led by retired justice r v easwar is accepted if they have purchased a property for significantly lower than the stamp duty value they will not be taxed on the differential as the relevant it provision is proposed to be dropped each state has a predecided minimum value on which stamp duty is payable even within the same city tony areas have a higher predecided value in common parlance such value is referred to as the stamp duty value currently if a buyer purchases a property for a price below the applicable stamp duty value and the difference between the price of the property that has been paid and the stamp duty value is more than rs 50000 then such a difference is assumed to be the income of the buyer it is taxable in the hands of the buyer as income from other sources see table the tax rate will be the applicable rate including surcharge and cess depending on the tax slab the buyer falls in the maximum marginal rate of tax is 3461 for those having a taxable income of more than rs 1 crore tax experts say the intention of introducing this provision which came into effect from april 1 2014 was to curb black money which is pumped into real estate deals however the it panel points out this tax provision viz section 562viibii works on the assumption that the buyer of the property would have paid consideration more than the stated consideration this presumption is not in accordance with judicial interpretation and therefore deserves to be deleted a real estate research adds that in recent times in many regions property prices have widely fluctuated at the same time states have been hiking the stamp duty value thus the proposal by the it simplification committee is welcome