Section 50CA of Income Tax Act for AY 2023-24

Section 50CA of Income Tax Act 1961 amended by Finance Act 2022 and Rules 1962. Full value of consideration for transfer of share.

Amended and updated notes on section 50CA of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to special provision for full value of consideration for transfer of share other than quoted share.

Chapter IV (Sections 14 to 59) of the Income Tax Act 1961 deals with the provisions related to computation of total income. Section 50CA of IT Act 1961-2023 provides for special provision for full value of consideration for transfer of share other than quoted share.

Recently, we have discussed in detail section 50C (special provision for full value of consideration in certain cases) of IT Act 1961. Today, we learn the provisions of section 50CA of Income-tax Act 1961. The amended provision of section 50CA is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 50CA of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India.

Section-50CA: Special provision for full value of consideration for transfer of share other than quoted share

Where the consideration received or accruing as a result of the transfer by an assessee 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 such manner as may be prescribed, the value so determined shall, for the purposes of section 48, be deemed to be the full value of consideration received or accruing as a result of such transfer.

Provided that the provisions of this section 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.

Explanation: For the purposes of this section, “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.


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