Section 80 - Fair market value deemed to be full value of consideration in certain cases
Where consideration is not ascertainable or cannot be determined, fair market value on the transfer date becomes the deemed consideration.
Reviewed by CA Nikhil Gupta · Updated 9 October 2026
Section 80 is presented using the consolidated Income-tax Act, 2025 as amended by the Finance Act, 2026. The general commencement date is 1 April 2026. Earlier years and saved proceedings may remain governed by the Income-tax Act, 1961 and the repeal/savings framework.
2-minute professional decode
Where consideration is not ascertainable or cannot be determined, fair market value on the transfer date becomes the deemed consideration.
Who should test this section?
Section 80 matters to investors, property owners, promoters, companies, firms and advisers where the transaction involves fair market value deemed to be full value of consideration in certain cases; the charge, computation and relief steps should be separated.
Evidence to retain
The section 80 file should preserve acquisition and transfer instruments, valuation or stamp records, payment evidence, holding-period material and every document that supports the treatment of fair market value deemed to be full value of consideration in certain cases.
1961 Act bridge
| Legacy provision | Legacy heading | Mapping |
|---|---|---|
| 50D | Fair market value considered to be full value of consideration in certain cases. | Renumbered / mapped |
The bridge is a research aid. Legacy case law carries over only after the current wording and transition rules are matched.
Rules and forms linked to this section
Worked application
Prepare a hypothetical transaction involving fair market value deemed to be full value of consideration in certain cases. Identify the person, tax year, trigger, evidence and connected provision first; then apply section 80 step-by-step and document why each statutory condition is or is not met.
Common mistake
For section 80, do not jump from sale proceeds to a capital-gain number: first identify the transfer/charging event, then consideration, cost, timing and any exemption or rollover condition relevant to fair market value deemed to be full value of consideration in certain cases.
Compliance approach
Identify the statutory trigger for section 80, lock the relevant tax year, reconcile the facts to the operative sub-section, preserve the evidence trail and separately test every linked Rule, Form, Schedule and exception before finalising the return position.
Numeric / timing checkpoints in the operative text
- No standalone numeric checkpoint should be inferred from the heading; read the operative text.
Related provisions
Current statutory text
Primary-source trail
- Consolidated Income-tax Act, 2025 (as amended by Finance Act, 2026) (official external source)
- Income Tax Department - Act/Rules/Forms hub (official external source)
- CBDT commencement material - Act operative from 1 April 2026 (official external source)
- Income-tax Rules, 2026 - Notification No. 22/2026 (official external source)
Source status: full Section 80 statutory text in the local source corpus; reconciled to the current consolidated Act control on 8 October 2026.