Section 56(2)(x) governs the provisions regarding taxability of gifts received by a person on or after 1st April 2017.
The following types of gifts are taxable under the head 'Income from Other Sources':
Where money has been received without consideration in excess of Rs. 50,000/- in a year, then entire money receipt would be taxable.
Where any movable property has been received:
Without consideration: If Aggregate FMV of all movable properties received during the year without consideration is more than Rs. 50,000/- in a year, then entire FMV of all such assets would be taxable.
For Inadequate consideration: If difference between Aggregate FMV and consideration for all assets is greater than Rs. 50,000/- in a year, then difference would be taxable.
The expression movable property includes the following capital assets of the assessee (If property is stock in trade of business in hands of recipient then 56(2)(x) will not apply) :
Shares and securities
Jewellery
Archaeological Collections
Drawings
Paintings
Sculptures
Any work of art
Bullion
Virtual Digital Asset
Where any immovable property has been received:
Without consideration: In such a case if the stamp duty value (SDV) of single property is greater than Rs. 50,000/-, then entire SDV would be taxable. Here SDV has to be considered property wise and not in aggregate for all properties received during the year.
For Inadequate consideration:If difference between SDV and consideration in respect of a single property is greater than Rs. 50,000/- AND SDV is also greater than 110% of the consideration, then difference between SDV and consideration would be taxable.
The provisions relating to use of SDV as on the date of agreement and reference to the valuation officer in case of dispute are same as mentioned in section 50C of the Act.
This clause is not applicable in relation to any money, property (movable or immovable) received:
from any relative
on the occasion of marriage of the individual
under a will or by way of inheritance
in contemplation of death of the payer
from any local authority
from hospital or medical institution or educational institution referred in section 10(23C)
from or by any trust or institution registered u/s 12AB.
from an individual by a trust created for the benefit of the relative such individual.
in case of certain transactions not regarded as transfer under section 47.
The term relative for the purpose of this section means:
In case of Individual: Spouse, Brother/Sister, Brother/Sister of spouse, Brother/Sister of either of the parents, Lineal Ascendent of individual or spouse, Lineal Descendant of individual or spouse, spouse of the above persons.
(x) - Taxation of Gifts ){kind=link}
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