Consideration for transfer in cases of understatement

The full value of the evaluation for the transfer shall, with the prior approval of the Examining Assistant Commissioner, be taken to be the fair market price of the capital asset where the person purchasing a capital asset from an assessee is directly or indirectly related to the assessee and the revenue officer has reason to believe that the transfer was made with the intention of avoiding or reducing the liability of the assessee under section 45. Don't wait, just click 80g deduction.

Without limiting the provisions of the aforementioned sub-section, if the income-tax officer believes that the market price of a capital asset transferred by a taxpayer as of the transfer exceeds the full market value of the consideration declared by the taxpayer in respect of the transfer of a such financial instrument by an amount equal to not less than 15% of the value so declared, therefore, with the inspecting assistant commissioner's prior consent, the full amount of the remuneration for such a capital asset shall be considered to be its fair market value on the day of its transfer.

However, this subsection shall not apply in any circumstances where the capital assets are transferred to the Government or where the Central Government or the Reserve Bank of India determines or approves the entire amount of the remuneration for the transfer of the capital asset.

Consideration implies a benefit in return. It is a crucial component that is often needed in a contract. The concept that one party to an agreement shouldn't be bound by it if the other party isn't equally obligated is one of the fundamental principles behind the modern requirement of consideration. In general, even if an agreement is on paper, neither party may enforce it if there is no consideration.

To put it positively, the idea of consideration calls for something to have been given and something to have been received as the "price" of each party's commitments in a contract. For instance: Y pledges to pay X Rs. 1,100 for the task, and X promises to install a house air conditioning unit for Y. The right to collect Rs. 1,100 from Y after the project is finished is the price X has received in exchange for his duty to install the unit in this case, and the right to have the unit installed is the price Y has received in exchange for her promise to pay the Rs. 1,100. You are at correct place for section 80g.