Amended and updated notes on section 50D of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to fair market value deemed to be full value of consideration in certain cases.
Chapter IV (Sections 14 to 59) of the Income Tax Act 1961 deals with the provisions related to computation of total income. Section 50D of IT Act 1961-2023 provides for fair market value deemed to be full value of consideration in certain cases.
Recently, we have discussed in detail section 50CA (special provision for full value of consideration for transfer of share other than quoted share) of IT Act 1961. Today, we learn the provisions of section 50D of Income-tax Act 1961. The amended provision of section 50D is effective for financial year 2022-23 relevant to the assessment year 2023-24.
In this article, you will learn detail of the provisions of section 50D of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India.
Section-50D: Fair market value deemed to be full value of consideration in certain cases
Where the consideration received or accruing as a result of the transfer of a capital asset by an assessee is not ascertainable or cannot be determined, then, for the purpose of computing income chargeable to tax as capital gains, the fair market value of the said asset on the date of transfer shall be deemed to be the full value of the consideration received or accruing as a result of such transfer