Paste with transparent background in Paint

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.

just a short addendum. the transparent selection does work on current image only not between multiple images. if you want to add some extra to your image (but don't want to buy advanced software) you are still able to do a tiny hack:

1. remember your image's original width
2. resize/extend your image for example to the right
3. draw or copy-paste whatever you want in this white area
4. do a transparent selection on it
5. drag the selection to the left, onto the original image
6. reset your the image's original width

see mspaint screenshots here