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Section 56(vii)(a)

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This query is : Resolved

bhavya (Querist)

16 June 2012 section 56(vii)(a)

"if any sum of money, without consideration, the aggregate value of which exceeds Rs.50000, the whole of the aggregate of such sum"

suppose i receive without consideration a sum of Rs. 100000, which i treat the same to be as unsecured loan & no interest is paid on that deposit.

please let me know whether the amount taken & shown as unsecured loan will be treated as my income or not in terms of section 56(vii)(a).

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)

16 June 2012 Dear Friend, According to the provisions of Section 56(vii)(a) of the Income Tax Act, 1961 any sum received without consideration or proper explanation in excess of Rs. 50000/- will be considered as income. Since you have received Rs. 100000/- without consideration as unsecured loan this amount is going to be taxed as income in your hands as income from other sources.

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