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What is Fair market value deemed to be full value of consideration in certain cases Advance money received? Section 50D and 51 of Income Tax Act 1961

Fair market value deemed to be full value of consideration in certain cases and Advance money received are defined under section 50D and 51 of Income Tax Act 1961. Provisions under these Sections are:

Section 50D of Income Tax Act "Fair market value deemed to be full value of consideration in certain cases"

Section 50D. 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.

 

Section 51 of Income Tax Act "Advance money received"

Section 51. Where any capital asset was on any previous occasion the subject of negotiations for its transfer, any advance or other money received and retained by the assessee in respect of such negotiations shall be deducted from the cost for which the asset was acquired or the written down value or the fair market value, as the case may be, in computing the cost of acquisition :

2[Provided that where any sum of money, received as an advance or otherwise in the course of negotiations for transfer of a capital asset, has been included in the total income of the assessee for any previous year in accordance with the provisions of clause (ix) of sub-section (2) of section 56, then, such sum shall not be deducted from the cost for which the asset was acquired or the written down value or the fair market value, as the case may be, in computing the cost of acquisition.]

   
 

Income Tax Act 1961

What is Capital gains? Section 45 of Income Tax Act 1961

What is Capital gains on distribution of assets by companies in liquidation? What is Capital gains on purchase by company of its own shares or other specified securities? Section 46 and 46a of Income Tax Act 1961

What are the Transactions not regarded as transfer? Section 47 of Income Tax Act 1961

What is Withdrawal of exemption in certain cases? Section 47A of Income Tax Act 1961

What is Mode of computation? Section 48 of Income Tax Act 1961

What is Cost with reference to certain modes of acquisition? Section 49 of Income Tax Act 1961

What is Special provision for computation of capital gains in case of depreciable assets? Section 50 of Income Tax Act 1961

What is Special provision for cost of acquisition in case of depreciable asset? What is Special provision for computation of capital gains in case of slump sale? Section 50A and 50B of Income Tax Act 1961

What is Special provision for full value of consideration in certain cases? Section 50C of Income Tax Act 1961

What is Fair market value deemed to be full value of consideration in certain cases Advance money received? Section 50D and 51 of Income Tax Act 1961

 

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