Undervaluation of consideration: Section 269C targets understated transfer consideration; Section 4(1)(a) levies tax on deemed gift. Section 269C addresses deliberate understatement in the instrument of transfer by treating acquisition as affected by understatement to counter tax evasion. Section 4(1)(a) treats the gap between declared consideration and fair market value as a deemed gift taxable under the Gift-tax Act. The proceedings are generally mutually exclusive and need not be simultaneous, but both may be initiated where declared consideration is less than actual payment and market value exceeds actual payment, permitting Income-tax action on understatement and Gift-tax on the excess market gap.
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.
Undervaluation of consideration: Section 269C targets understated transfer consideration; Section 4(1)(a) levies tax on deemed gift.
Section 269C addresses deliberate understatement in the instrument of transfer by treating acquisition as affected by understatement to counter tax evasion. Section 4(1)(a) treats the gap between declared consideration and fair market value as a deemed gift taxable under the Gift-tax Act. The proceedings are generally mutually exclusive and need not be simultaneous, but both may be initiated where declared consideration is less than actual payment and market value exceeds actual payment, permitting Income-tax action on understatement and Gift-tax on the excess market gap.
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