S.50C of Income-tax Act, 1961 Amended in 2016

Income-tax Act, 1961 was amended in 2016 through S.31 of the Finance Act, 2016 [Gazette EO Part II S.1 dt. 14 May 2016]

S.31 of Finance Act, 2016 amended S.50C of the Income-tax Act, 1961 which says :

"Provided that where the date of the agreement fixing the amount of consideration and the date of registration for the transfer of the capital asset are not the same, the value adopted or assessed or assessable by the stamp valuation authority on the date of agreement may be taken for the purposes of computing full value of consideration for such transfer:"

"Provided further that the first proviso shall apply only in a case where the amount of consideration, or a part thereof, has been received by way of an account payee cheque or account payee bank draft or by use of electronic clearing system through a bank account, on or before the date of the agreement for transfer".

Apart from amending S.50C, the Finance Act, 2016 also amended S.92CA (3A) of Income-tax Act, 1961 which says : "Provided that in the circumstances referred to in clause (ii) or clause (x) of Explanation (1) to section 153, if the period of limitation available to the Transfer Pricing Officer for making an order is less than sixty days, such remaining period shall be extended to sixty days and the aforesaid period of limitation shall be deemed to have been extended accordingly."

Vishal

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