TMI BlogAmendment of section 56.X X X X Extracts X X X X X X X X Extracts X X X X ..... issued under clause (ii) of the first proviso and such company fails to comply with any of those conditions, then, any consideration received for issue of share that exceeds the face value of such share shall be deemed to be the income of that company chargeable to income-tax for the previous year in which such failure has taken place. ; (c) in the Explanation, after clause (a), the following clauses shall be inserted, namely:- (aa) specified fund means a fund established or incorporated in India in the form of a trust or a company or a limited liability partnership or a body corporate which has been granted a certificate of registration as a Category II Alternative Investment Fund and is regulated under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me of that company chargeable to income-tax for the previous year in which such failure has taken place and, it shall also be deemed that the company has underreported the said income in consequence of the misreporting referred to in sub-section (8) and sub-section (9) of section 270A for the said previous years. , . (12) Page 10, in line 13, for Category II , substitute Category I or a Category II (13) Thus, the amended provision will be: 21. In section 56 of the Income-tax Act, in sub-section (2), (i) in clause (viib), with effect from the 1st day of April, 2020,- (a) in the proviso, in clause (i), for the words venture capital fund , the words venture cap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (ab) trust means a trust established under the Indian Trusts Act, 1882 (2 of 1882) or under any other law for the time being in force; ; (ii) in clause (viii), for the words, brackets, letters and figures clause (b) of section 145A , the words, brackets, figures and letter sub-section (1) of section 145B shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2017; (iii) in clause (x), (A) in sub-clause (b), in the second proviso, 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; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , if the consideration for issue of shares is received by a venture capital undertaking from a specified fund. It is further proposed to define the expression specified fund . It is also proposed to insert a second proviso to the said clause so as to provide that where the provisions of the said clause have not been applied to a company on account of fulfilment of conditions specified in the notification issued under clause ( ii ) of the first proviso and the company fails to comply with any of those conditions, then, any consideration received for issue of share that exceeds the face value of such shares shall be deemed to be the income of the company chargeable to income-tax for the previous year in which such f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... electronic mode as may be prescribed. The proviso to the said clause ( x ) provides that where any person receives, in any previous year, from any person or persons any property without consideration, the aggregate fair market value of which exceeds fifty thousand rupees, the whole of the aggregate fair market value of such property or consideration which is less than the aggregate fair market value of the property by an amount exceeding fifty thousand rupees, then the aggregate fair market value of such property as exceeds such consideration shall be the income of the person receiving such property. It is proposed to insert a new clause ( XI ) in the proviso to the said clause ( x ) so as to provide that any sum o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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