SwatiSwati asked 1 year ago
1 Answers
RaviRavi Staff answered 1 year ago

Clause 28
28. Whether during the previous year the assessee has received any property, being share of a company not being a company in which the public are substantially interested, without consideration or for inadequate consideration as referred to in section 56(2)(viia), if yes, please furnish the details of the same.
 
Section 56(2)(viia)
where a firm or a company not being a company in which the public are substantially interested, receives, in any previous year, from any person or persons, on or after the 1st day of June, 2010 [but before the 1st day of April, 2017], any property, being shares of a company not being a company in which the public are substantially interested,—
(i)without consideration, the aggregate fair market value of which exceeds fifty thousand rupees, the whole of the aggregate fair market value of such property;
(ii)for a consideration which is less than the aggregate fair market value of the property by an amount exceeding fifty thousand rupees, the aggregate fair market value of such property as exceeds such consideration
 
Section 56(2)(x) 
where any person receives, in any previous year, from any person or persons on or after the 1st day of April, 2017,—
(a) any sum of money, without consideration, the aggregate value of which exceeds fifty thousand rupees, the whole of the aggregate value of such sum;
(b) any immovable property,—
(A) without consideration, the stamp duty value of which exceeds fifty thousand rupees, the stamp duty value of such property;
(B) for a consideration which is less than the stamp duty value of the property by an amount exceeding fifty thousand rupees, the stamp duty value of such property as exceeds such consideration
 
Conclusion
 
Sec 56(2)(viia) was applicable to closely held companies and firms, this clause is now not applicable. Instead a new clause Sec 56(2)(x) is applicable which is applicable to all persons, so it has much wider applicability. So clause 28 should have been amended to include Sec 56(2)(x). But this is not done, So now clause 28 has become useless. 
ICAI didnt highlight this change in RTP or any other medium. So i will suggest remember clause 28 & Sec 56(2)(viia), if question comes answer it as per this section (viia) and then clearly explain that this is now replaced and technically / literally no reporting is required. So we are safe, we know icai speed of incorporating changes is super slow.

 

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