Section 2 - Amendment of section 269A - Income Tax (Amendment) Act, 1981

2. Amendment of section 269A. In section 269A of the Income-tax Act, 1961 (hereinafter referred to as the principal Act), (a) in clause (a),- (i) in the opening portion, for the words apparent consideration , in relation to any immovable property transferred, means,- . substituted, namely: apparent consideration ,- (1) in relation to any immovable property transferred, being immovable property of the nature referred to in sub-clause (i) of clause (e), means,- ; (ii) after sub-clause (ii), the following shall be inserted, namely: (iii) if the transfer is by way of lease,- (A) in a case where the consideration for the transfer consists of premium only, the amount of premium as specified in the instrument of transfer; (B) in a case where the consideration for the transfer consists of rent only, the aggregate of the moneys (if any) payable by way of rent and the amounts for the service or things forming part of or constituting the rent, as specified in the instrument of transfer; (C) in a case where the consideration for the transfer consists of premium and rent, the aggregate of the amount of the premium, the moneys (if any) payable by way of rent and the amounts for the service or things forming part of or constituting the rent, as specified in the instrument of transfer, and where the whole or any part of the consideration for such transfer is payable on any date or dates falling after the date of such transfer the value of the consideration payable after such date shall be deemed to be the discounted value of such consideration, as on the date of such transfer, determined by adopting the rate of interest at eight per cent. per annum; (2) in relation to any immovable property transferred, being immovable property of the nature referred to in sub-clause (ii) of clause (e), means- (i) in a case where the consideration for the transfer consists of a sum of money only, such sum; (ii) in a case where the consideration for the transfer consists of a thing or things only, the price that such thing or things would ordinarily fetch on sale in the open market on the date of the transfer; (iii) in a case where the consideration for the transfer consists of a thing or things and a sum of money, the aggregate of the price that such thing or things would ordinarily fetch on sale in the open market on the date of the transfer and such sum, and where the whole or any part of the consideration for such transfer payable on any date or dates falling after the date of such transfer, the value of the consideration payable after such date shall be deemed to be the discounted value of such consideration, as on the date of such transfer, determined by adopting the rate of interest at eight per cent. per annum; ; (b) for clause (d), the following clause shall be substituted, namely:- (d) fair market value , (i) in relation to any immovable property transferred by way of sale or exchange, being immovable property of the nature referred to in sub-clause (i) of clause (e), means the price that the immovable property would ordinarily fetch on sale in the open market on the date of execution of the instrument of transfer of such property; (ii) in relation to any immovable property transferred by way of lease, being immovable property of the nature referred to in sub-clause (i) of clause (e), means the premium that such transfer would ordinarily fetch in the open market on the date of execution of the instrument of transfer of such property, if the consideration for such transfer had been by way of premium only; (iii) in relation to any immovable property transferred, being immovable property of the nature referred to in sub-clause (ii) of clause (e), means the consideration in the form of money that such transfer would ordinarily fetch in the open market on the date of the transfer, if such transfer had been made only for consideration in money; ; (c) in clause (e),- (i) in the opening portion, for the words immovable property means any land or any building , the following shall be substituted, namely:- immovable property means,- (i) any land or any building ; (ii) in the Explanation, for the words this clause , the words this sub-clause shall be substituted; (iii) the following sub-clause shall be inserted after the Explanation, namely:- (ii) any rights of the nature referred to in clause (b) of sub-section (1) of section 269AB; ; (d) for clause (f), the following clause shall be substituted, namely:- (f) instrument of transfer means the instrument of transfer registered under the Registration Act, 1908 (16 of 1908) or as the case may be, the statement registered under section 269AB with the competent authority; ; (e) for clause (h), the following clause shall be substituted, namely: - (h) transfer ,- (i) in relation to any immovable property referred to in sub-clause (i) of clause (e), means transfer of such property by way of sale or exchange or lease for a term of not less than twelve years, and includes allowing the possession of such property to be taken or retained in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882 (4 of 1882). Explanation.- For the purposes of this sub-clause, a lease which provides for the extension of the term thereof by a further term or terms shall be deemed to be a lease for a term of not less than twelve years if the aggregate of the term for which such lease has been granted and the further term or terms for which it can be so extended is not less than twelve years; (ii) in relation to any immovable property of the nature referred to in sub-clause (ii) of clause (e), means the doing of anything (whether by way of transfer of shares in a co-operative society or company or by way of any agreement or arrangement or in any other manner whatsoever) which has the effect of transferring, or enabling the enjoyment of, such property. .