Amendment of section 43CA.
14. In section 43CA of the Income-tax Act, in sub-section (4), for the words “bank account”, the words “bank account or through such other electronic mode as may be prescribed” shall be substituted with effect from the 1st day of April, 2020.
Notes on Clauses:
Clause 14 of the Bill seeks to amend section 43CA of the Incometax Act relating to special provision for value of consideration for transfer of assets other than capital assets in certain cases.
Sub-section (3) of the said section provides that where the date of agreement fixing the value of consideration for the transfer of the asset and the date of registration of such transfer of asset are not the same, then the full value of consideration for transfer of such asset shall be the stamp duty value on the date of the agreement.
Sub-section (4) of the said section provides that the provisions of sub-section (3) shall apply only in those cases where the amount of consideration or a part thereof has been received by way of an account payee cheque or an account payee bank draft or by use of electronic clearing system through a bank account on or before the date of agreement for transfer of the asset.
It is proposed to amend the said sub-section (4) so as to empower the Board to make rules to provide that the provisions of sub-section (3) shall also apply in respect of those cases where the amount of consideration or a part thereof has been received by way of any other electronic mode as may be prescribed.
This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.
