BooksIQIf a person receives money or property without (or for inadequate) consideration, it is taxable as Income from Other Sources where the aggregate exceeds ₹50,000 in a year. EXEMPT: gifts from RELATIVES, on the occasion of MARRIAGE, under a WILL/inheritance, and a few other specified cases.
Key points
- §56(2)(x) taxes, as INCOME FROM OTHER SOURCES, the following received by any person without or for inadequate consideration: (a) SUM OF MONEY — if the AGGREGATE during the year exceeds ₹50,000, the WHOLE amount is taxable;
- (b) IMMOVABLE PROPERTY without consideration — if the stamp duty value (SDV) exceeds ₹50,000, the SDV is taxable;
- for INADEQUATE consideration, if SDV exceeds consideration by more than the HIGHER of ₹50,000 or 10% of consideration, the difference is taxable;
- (c) MOVABLE PROPERTY (shares, jewellery, art, etc.) — taxable on the same ₹50,000 aggregate basis using FMV.
- EXEMPTIONS: receipts from a RELATIVE (as defined), on the occasion of the individual's MARRIAGE, under a WILL or by INHERITANCE, in contemplation of death, from a local authority, from a registered charitable trust/institution, and certain others.
Reference: §56(2)(x) ITA 1961
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