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Analysis of new valuation rules to determine fair market value of a property other then immovable property for the purpose of section 56

As per section 56(2)(vii)(c)(ii) of the Income-tax Act, 1961 (the Act) if an individual or a Hindu undivided family receives any property other than immovable property on or after 1 October 2009 for a consideration which is less than the Fair Market Value (FMV) of the property by an amount exceeding fifty thousand rupees then aggregate fair market value of such property exceeding such consideration will be treated as income of the receiver.
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Income earned by CA from audits will not be entitled to relief u/s 80RR

Income earned by the assessee by exercise of his profession as a Chartered Accountant and which is nothing to do with the exercise of the profession as a author will not be entitled to relief under Section 80RR.
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Income From Other Sources- Section 56 (2)(Vii) Unequal treatment of all equals

The Budget 2009-2010 amended the Income Tax Act so as to tax notional income resulting from transactions in immovable properties under section 56 i.e. Income from other sources. Our focus in this write-up will be only on newly inserted provisions in section 56 pertaining to Immovable Property which is bound to result in more questions than their answers.
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