Section 50D: Calculating Capital Gains Tax with Unascertainable Consideration Using Fair Market Value for Compliance.
Section 50D of the Income Tax Act addresses situations where the consideration from the transfer of a capital asset is unascertainable or indeterminable. In such cases, for the purpose of calculating capital gains tax, the fair market value of the asset at the date of transfer is considered the full value of the consideration received. This provision ensures that the capital gains tax is computed based on a quantifiable value, maintaining tax compliance and consistency.