pls explain me the amendment in the following section:
Transfer of movable/immovable property without consideration or for
inadequate consideration to be taxed in the hands of the recipient [Section
56(2)(vii)]
Related amendment in sections: 2(24) & 49(4)
For all practical purposes section 56(2)(vii) in relation to purchase of porpoerty has no application as the same is proposed to be deleted by the finance bill 2010. However the same is relevant for exams purposes
Section 2(24) contains the defination of income. So for income to be taxable u/s 56(2)(vii) needs to included in the defination of income.
Section 49(4) states that where tax is paid on deemed gift u/s 56(2)(vii) the amount on which tax is paid will be added to the cost of acquistition
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