56(vi) and 60

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Querist : Anonymous

Querist : Anonymous (Querist)

20 June 2011
Does combine reading of section 56(vi) and 60 amounts to double taxation?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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20 June 2011 On the plain reading it may seems so , but there is a "procedural" difference between the receipt of any sum of money (Ref-S. 56(vi)) and Income arising to any person by virtue of a transfer (Ref- S.60) and due to this difference double taxation is not possible.

The receipt under section 56(vi) is without any consideration whereas the receipt under 60 is having certain consideration by the virtue of that income is transferred. The basis of transfer of income may be in the form of a settlement, trust, covenant, agreement or arrangement.
So, if any amount received by a person
under a settlement, trust, ...etc., the said amount can not be taxed in the hand of recipient under section 56(vi).

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