(i) Section 43CA, in the Income-tax Act 1961, is a “Special provision for full value of consideration for transfer of assets other than capital assets in certain cases”.
This provision has been brought on the statute by the finance Act 2013, with effect from 1st April 2014. Finance bill 2020 proposed to amend the proviso to sub section (1) of the Act. The amendment is to the effect that the present tolerance limit of variation, in the value adopted or assessed or assessable by the authority for the purposes of payment of stamp duty, existing at one hundred and five per cent of the consideration, has been increased to one hundred and ten percent of the consideration in the value adopted, or assessed or assessable by the authority for the purposes of stamp duty. This amendment will come into effect from
1st April 2021, and will apply in relation to Assessment Year 2021-22, and subsequent Assessment Years.
(ii). Section 50C of the Income Tax Act is a “Special provision for full value of consideration in certain cases”. This provision has been brought on statute by Finance Act 2002 with effect from 1-4-2003. Finance bill 2020 purposed to amend the third proviso to sub section (1) that has been brought on statute by Finance Act 2018, with effect from 1-4-2019. The amendment was to the effect, that the present tolerance limit of variation, in the value adopted on or assessed or assessable by the stamp valuation authority existing at five per cent of the consideration received or accruing as a result of the transfer is increased to ten percent of the consideration so received or accruing as a result of transfer, shall for the purposes of section 48, be deemed to be the full value of consideration. This amendment will take effect from 1st April 2021 and will accordingly apply in relation to Assessment Year 2021-22, and subsequent assessment years.
(iii). An amendment has been proposed in clause (x) sub clause (b) in item ‘B’ in sub item (ii) (x) of sub section (2) of section 56 of Income Tax Act 1961.
The amendment was to the effect, that for the words “five percent”, the words “ten percent” shall be substituted with effect from the 1st day of 2021, and accordingly apply in relation to assessment Year 2021-22 and subsequent assessment years. This was yet another amendment to the tolerance limit brought into the statute by Finance Act 2018 with effect from 1-4-2019, at “five percent”, now to “ten percent”, by virtue of the present amendment.