Amendment of section 56.
21. In section 56 the Income-tax Act, in sub-section (2), in clause (x),––
(a) in sub-clause (b), in item (B), after the third proviso, the following proviso shall be inserted, namely:––
“Provided also that in case of property being referred to in the second proviso to sub-section (1) of section 43CA, the provisions of sub-item (ii) of item (B) shall have effect as if for the words “ten per cent.”, the words “twenty per cent.” had been substituted;”;
(b) in the proviso, in clause (IX) after the words, brackets and figures “clause (vii)”, the words, brackets, figures and letters “or clause (viiac) or clause (viiad)” shall be inserted with effect from the 1st day of April, 2022.
Notes on Clauses:
Clause 21 of the Bill seeks to amend section 56 of the Income-tax Act relating to income from other sources.
Sub-clause (b) of clause (x) of sub-section (2) of the said section, inter alia, provides that where any person receives any immovable property in any previous year from any person or persons on or after the 1st day of April, 2017 for a consideration, and where the stamp duty value of such property exceeds ten per cent. of the consideration and the excess amount thereof is more than fifty thousand rupees, it shall be charged to tax under the head income from other sources.
It is proposed to insert a fourth proviso to the said clause so as to provide that in case of property being referred to in the second proviso to sub-section (1) of section 43CA, the provisions of sub-item (ii) of item (B) of the said clause shall have the effect as if for the words “ten per cent.”, the words “twenty per cent.” had been substituted.
This amendment will take effect from 1st April, 2021 and will, accordingly, apply in relation to the assessment year 2021-2022 and subsequent assessment years.
Clause (x) of sub-section (2) of the said section, inter alia, provides that the assets received without or inadequate consideration shall be charged to tax under the head “Income from other sources”.
It is proposed to amend the proviso to said clause of the said sub-section so as to exclude the transfer of capital asset between the original Fund and the resultant fund, which are not regarded as transfer under clause (viiac) or clause (viiad) of section 47, from the scope of clause (x) of the said sub-section.
This amendment will take effect from 1st April, 2022 and will, accordingly, apply in relation to the assessment year 2022-2023 and subsequent assessment years.
