Income Tax--Business Income, Capital Gains & Income from Other Sources

Inter Se Relationship Between Sections 43CA, 47, 50C and 56(2)(x)

V.K. Subramani

The legal provisions contained in the taxing statutes have some underlying reasons. No legal amendment is left without explanation by the Finance Act which brings such change. However, the inter se relationship between legal provisions which were incorporated in the statute at different points of time is fascinating as the lawmakers cannot leave anything to chance as that would affect the tax collection. Recently one such error in drafting could be found in proviso to section 16(ia) which made wrong reference to clause (ii) of sub-section (1A) of section 115BAC which was subsequently corrected by making reference to clause (iii) of sub-section (1A) of section 115BAC by means of Taxation Laws (Amendment) Act, 2025, w.r.e.f. 1-4-2025.