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Taxation in case of Gift of Money, Gift of property or Property Acquired for Inadequate Consideration [Section 56(2)(x)]

Where any person receives, in any previous year, from any person or persons on or after 1.4.2017 the following income, it shall be chargeable to income tax under the head "income from other sources" as per Section 56(2)(x)]:

Particulars of income

Amount taxable under the head 'income from other sources'

(A) Any sum of money,—
— without consideration, the aggregate value of which exceeds Rs. 50,000

the whole of the of aggregate value of such sum

(B) Any immovable property,—

(i) without consideration, the stamp duty value of which exceeds Rs. 50,000;

 

the stamp duty value of property

(ii)  for a consideration, the stamp duty value of such property as exceeds such consideration, if the amount of such excess is more than the higher of the following amounts namely -

  1. The amount of Rs. 50,000 ; and
  2. The amount equal to 5% ( 10% w.e.f. A.Y. 2021-22)

the stamp duty value of such property as exceeds the consideration received

(C) Any property, other than immovable property,—

 

(i)            without consideration, the aggregate fair market value of which exceeds Rs. 50,000

the whole of the aggregate fair market value of such property

(ii)           for a consideration which is less than the aggregate fair market value of the property by an amount exceeding Rs. 50,000

the aggregate fair market value of such property  as exceeds such consideration

 

Note :

 

"Property" means the following Capital Asset of the assessee, namely :-

  1. Immovable property being land or building or both
  2. Shares and Securities
  3. Jewellery
  4. Archaeological Collections
  5. Drawings
  6. Paintings
  7. Sculptures
  8. Any work or art, or
  9. Bullion 

 

 

Section 56(2)(x) – Does not apply in following cases

Section 56(2)(x), shall not apply to any sum of money or any property received—

(i)            from any relative; or

(ii)           on the occasion of the marriage of the individual; or

(iii)          under a will or by way of inheritance; or

(iv)          in contemplation of death of the payer or donor, as the case may be; or

(v)           from any local authority as defined in the Explanation to section 10(20); or

(vi)          from any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution referred to in section 10(23C); or

(vii)        from or by any trust or institution registered under section 12A or section 12AA (or section 12AB, w.e.f. 1.6.2020); or

(viii)       by any fund or trust or institution or any university or other educational institution or any hospital or other medical institution referred to in section 10(23C)(iv) or (v) or (vi) or (via); or

(ix)          by way of transaction not regarded as transfer under section 47(i) or (iv) or (v) or (vi) or (via) or (viaa) or (vib) or (vic) or (vica) or (vicb) or (vid) or (vii); or

(x)           from an individual by a trust created or established solely for the benefit of relative of the individual; or

(xi)          from such class of persons and subject to such conditions, as may be prescribed.

 

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