Sec 56
This query is : Resolved
26 February 2011
Gift of Motor Car by a friend ( FMV Rs.10 Lac) Will this car's FMV be taxable under the head Income From Other Sources in the hands of Assessee ??
Acc to Singhania Book - Motor Car will not be considered as property for the Sec 56(2)(vii) and hence it is not taxable. Property for the Sec.56(2)(vii) acc to Singhania means immovable property being land or building or both;shares and securities;jewellery;archaeological collections;drawings;paintings;sculptures; any work of art;bullion. In that case anyone who wants to gift Rs. 10 Lacs to his friend will gift him a car worth Rs. 10 lac and will avoid tax.
Acc to Singhania Book - Motor Car will not be considered as property for the Sec 56(2)(vii) and hence it is not taxable. Property for the Sec.56(2)(vii) acc to Singhania means immovable property being land or building or both;shares and securities;jewellery;archaeological collections;drawings;paintings;sculptures; any work of art;bullion. In that case anyone who wants to gift Rs. 10 Lacs to his friend will gift him a car worth Rs. 10 lac and will avoid tax.
26 February 2011
Motor vehicle is not included in "property", explanation (d) appearing in section 56 (2)(vii) of the Income tax Act,1961.
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