Opinion Of Eminent Legal Luminaries On Controversial Issues

Income from other sources- Transfer to associated Company

QUERY: If an individual sells gold for inadequate consideration on March 1, 2016 to an associate company would amended provisions of section 56(2) apply to it?
ANSWER: Up to assessment year 2016-17 this section was applicable to an Individual or a HUF, who receives any property exceeding Rs. 50,000/-.
From assessment year 2017-18, this section is applicable to all assessees who receive any property exceeding Rs. 50,000/-.
In this case, individual has transferred or sold gold for inadequate consideration on March 1, 2016 to associate company i.e. for assessment year 2016-17 therefore amended provision would not be applicable.

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Posted in Income-tax

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