Undervalued transfers: treat as understated consideration or bona fide inadequate sale, invoking income tax or gift tax rules accordingly. Where a transfer for consideration below fair market value reflects an understated consideration (assessee received more than declared), section 52 of the Income-tax Act applies subject to the statutory threshold and without need to quantify exact understatement; where the transfer is a bona fide inadequate consideration, the difference is taxable under section 4(1) of the Gift-tax Act if its conditions are satisfied, and the two regimes should not duplicate tax on the same amount, though either may be invoked protectively.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Undervalued transfers: treat as understated consideration or bona fide inadequate sale, invoking income tax or gift tax rules accordingly.
Where a transfer for consideration below fair market value reflects an understated consideration (assessee received more than declared), section 52 of the Income-tax Act applies subject to the statutory threshold and without need to quantify exact understatement; where the transfer is a bona fide inadequate consideration, the difference is taxable under section 4(1) of the Gift-tax Act if its conditions are satisfied, and the two regimes should not duplicate tax on the same amount, though either may be invoked protectively.
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