The
Income-tax, Act, 1961 has in all 298 sections and many of these have cross
reference to each other while interpreting the provisions. In such a scenario,
when any amendment takes place in any of the sections, the corresponding effect
and reference should be given to the relevant related sections as well.
However, inconsistency exists at
present in few of the sections of which 2 instances are listed below:-
1. Section 54, 54B, 54D & 54F:
The
Finance Act, 2017 amended section 2(42A) so as to reduce the period of holding
from the existing 36 months to 24 months in case of immovable property, being
land or building or both, to qualify as long-term capital asset.
Consequential
amendments for reducing the holding period of immovable property from 3 to 2
years is required to be made in sections 54, 54B, 54D & 54F in line with
the amendment in section 2(42A). At present, these sections restrict transfer
of new assets purchased for 3 years.
2.
Section 94(7):
DDT
u/s 115-O is abolished by Budget 2020 and so w.e.f 01.04.20, dividend is
taxable in the hands of shareholder. Thus, Dividend stripping provisions stand
redundant starting FY 20-21 & thus section 94(7) is no more relevant.
However, no change in this section has been made yet.
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