DELETION OF SECTION 56(2)(vii)(b)(ii)

The existing provisions of section 56(2)(vii)(b)(ii) provide that where any immovable property is received for a consideration which is less than the stamp duty value of the property by an amount exceeding 50,000, the stamp duty value of such property as exceeds such consideration, shall be chargeable to tax in the hands of the individual or HUF as income from other sources. This provision 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.

Hence, it is proposed that section 56(2)(vii)(b)(ii) be deleted w.e.f. 1.4.2017.

Source- ​Draft Report of Justice R.V. Easwar (Retd) Committee to Simplify the provisions of Income-tax Act, 1961

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Category : Income Tax (20860)
Type : News (11054)
Tags : Gift (71) section 56 (71)