What is the tax treatment of sum of money received as gift section 56 2?

1) Gift received from relative is exempt. 2) Gift received on the occasion other than marriage from non specified person shall be taxable under the head income from other sources. 3) Money received whether in cash or cheque in excess of Rs. 50,000/- from non specified persons shall be taxable.

What is the tax treatment of money received as gift under section 56?

Important Points About Gifts Received Under Section 56 50,000 is taxable under the Income Tax Act. However, if your friend gifts you Rs. 40,000, it will not be taxable. If the total amount of the gifts you have received amounts to more than Rs, 50,000 it will be taxable.

Which condition is applicable under valuation as per section 56 of Income Tax Act?

Specified property chargeable under section 56(2)(x) If received for a consideration which is less than the stamp duty value of property by an amount exceeding Rs 50000. Stamp value of such property as exceeds such consideration [ upto assessment year 2018-19].

Is Section 50C applicability on agricultural land?

section 50C is not applicable to sale of agricultural lands if it is exempt. Section 50C talks about the determination of the sales consideration in certain circumstances in order to compute the capital gain arising from the transfer of capital assets being land or building or both .

What is Section 56 2 of income tax?

Section 56(2)(x) of the Income Tax Act (‘IT Act’) provides that where any person receives any property (including shares of a company) for a consideration less than its fair market value (computed as per the prescribed method), the fair value as exceeding the consideration would be taxable in the hands of the person …

What is the tax treatment of sum of money received as gift under Section 56 also explain the provisions relating to taxation of winning from lotteries?

As per income tax act gifts received are taxable in the hands of recipient under the head of other Sources and there is no taxation for the donor. Here gift means any sum of money, Moveable property or immovable property which received without consideration or inadequate consideration.

What is income tax section 56?

(1) Income of every kind which is not to be excluded from the total income under this Act shall be chargeable to income-tax under the head “Income from other sources”, if it is not chargeable to income-tax under any of the heads specified in section 14, items A to E.

How do you calculate 50C?

For example, if value adopted by SVA is Rs 12,00,000 as against Rs 8,00,000 sale consideration claimed to be received by seller and value determined by valuation officer is Rs 15,00,000, sale consideration as per Section 50C will be Rs 12,00,000.

Does selling land count as income?

The sale of land is a taxable event if you sell it for a profit. However, there are ways to reduce the amount of taxes that you pay. And if you sell your land at a loss, you might be entitled to a tax deduction.

How much money can a husband give his wife tax free?

Gifts up to Rs 50,000 per annum are exempt from tax in India. In addition, gifts from specific relatives like parents, spouse and siblings are also exempt from tax.

What is Section 2 of Income Tax Act?

(2) ” annual value”, in relation to any property, means its annual value as determined under section 23; (3) 3 Omitted by the Direct Tax Laws (Amendment) Act, 1987 , with effect from 1 April, 1988 .]

What is section 56(2)(VII) of income tax?

Under the existing provision of section 56 (2) (vii), any sum of money or any property received without any consideration by any Individuals or HUF is chargeable to income tax. Section 56 (2) (vii a) was applicable only to the Firm and Closely held company.

What is section 56 clause (X) of the Income Tax Act?

Clause (x) is inserted in section 56 (2) to provide that the specified receipts [same as provided in Sec. 56 (2) (vii)] will be taxable as income in the hands of any person, under the head ‘Income from Other Sources’ Sub-Clause (c) of Clause (x) of Section 56-Taxation of any property other than Money and Immovable Property: –

Is section 56(2) (VII) (B) applicable to stamp duty?

By the time the property was registered the provisions of section 56 (2) (vii) (b) has come into force and hence, argued that the provisions of section 56 (2) (vii) (b) are squarely applicable in the instant case and the stamp duty value as on 13.08.2012 required to be taxed as income in the hands of the assessee.

What is the scope of chargeability under Section 56(2)(VII)?

The scope of chargeability under the said section can be briefly summarized as under: Section 56 (2) (vii) is applicable to receipts by Individuals/ HUF for the period commencing 1 October 2009 and ending 31 March 2017. With effect from 1 April 2017, the Finance Act, 2017 has inserted a new section 56 (2) (X): Purchase/Gift received by any person;