Paint v5.1 (Windows XP) had a fantastic feature to allow you to paste an image with a transparent background (see images below, note that "Paste" section that appears below the tools on the left).
Paint v6.3 (Windows 8.1) has some new features but apparently not the ability to paste an image with a transparent background. Has this feature been dropped? Is it a hidden option or is there a more recent version of Microsoft Paint that has this feature?
My Windows 10 installation is running Version 1703 (OS Build 15063.483).
It has the ability to set transparency on a text box or a selection, based on the second color chosen.