https://www.taxtmi.com/circulars?id=9649 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. en-us Fri, 22 Nov 1985 00:00:00 +0530 Wed, 08 Jun 2011 12:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=9649 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. Circulars Income Tax Fri, 22 Nov 1985 00:00:00 +0530 https://www.taxtmi.com/circulars?id=9649