27 October 2013
I did not understand the sec 56(2)(viib) valuation. is there any example for that amendment? actually I tried to find but I did not get it
The existing provisions of Section 56(2)(vii)(b) does not cover a situation where the immovable property has been received by an individual or HUF for inadequate consideration. Hence it is proposed to amend section 56(2)(vii)(b) w.e.f from 1st April, 2014 to provide that where any immovable property is received for a consideration which is less than the stamp duty value of the property by more than Rs 50,000, the stamp duty value of such property which is in excess of such consideration, shall be chargeable to tax in the hands of the transferee being individual or HUF as income from other sources. This Section is not applicable where the transferee is a company.
Further, where the date of agreement fixing the value of consideration for the transfer of asset and the date of registration of the transfer of the asset are not same, the stamp duty value as on the date of agreement for transfer shall be considered for the purposes of this section.
This exception shall be applicable only where the amount of consideration or part thereof for transfer has been received by any mode other than cash on or before the date of agreement.
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