Section 79 — Special provision for full value of consideration for transfer of share other than quoted share
Old Act equivalent: Section 50CA of IT Act 1961 Sub-part: E.—Capital gains
Statutory Text
(1) If the consideration received or accruing from the transfer of a capital asset, being share of a company other than a quoted share, is less than the fair market value of such share determined in the manner as may be prescribed, the value so determined shall be deemed to be the full value of consideration received or accruing as a result of such transfer for the purposes of section 72. (2) The provisions of sub-section (1) shall not apply to any consideration received or accruing as a result of transfer by such class of persons and subject to such conditions, as may be prescribed. (3) For the purposes of this section, the expression “quoted share” means the share quoted on any recognised stock exchange with regularity from time to time, where the quotation of such share is based on current transaction made in the ordinary course of business. Fair market value deemed to be full value of consideration in certain cases.
Sub-sections
Sub-section (1)
If the consideration received or accruing from the transfer of a capital asset, being share of a company other than a quoted share, is less than the fair market value of such share determined in the manner as may be prescribed, the value so determined shall be deemed to be the full value of consideration received or accruing as a result of such transfer for the purposes of section 72.
Sub-section (2)
The provisions of sub-section (1) shall not apply to any consideration received or accruing as a result of transfer by such class of persons and subject to such conditions, as may be prescribed.
Sub-section (3)
For the purposes of this section, the expression “quoted share” means the share quoted on any recognised stock exchange with regularity from time to time, where the quotation of such share is based on current transaction made in the ordinary course of business. Fair market value deemed to be full value of consideration in certain cases.
Provisos
None.
Explanations
None.
Tables
None.
Key Structure
- Applies to: Any assessee transferring shares of a company other than quoted shares.
- Asset type: Capital asset being a share of a company other than a quoted share; “quoted share” means a share quoted on any recognised stock exchange with regularity from time to time, where quotation is based on current transactions in the ordinary course of business.
- Conditions: Where consideration received or accruing from the transfer is less than the fair market value of such share determined in the prescribed manner, the prescribed FMV is deemed to be the full value of consideration for computing capital gains under section 72.
- Time limits: None specified in this section.
- Monetary limits: None specified in this section.
- Exceptions: Sub-section (1) does not apply to consideration received or accruing from transfer by such class of persons and subject to such conditions as may be prescribed under sub-section (2).
Cross-References
- s072-computation — prescribed FMV is deemed the full value of consideration for the purposes of section 72.
Amendment Notes
None noted from the extracted pages.