banner_ad

Taxability u/s 56 (1) (vii)

This query is : Resolved 
Profile Image

Profile Image

(Querist)
04 October 2010 Hi Everyone,

Just a small doubt, we all know any sum over 50,000 received from non relative is taxable u/s 56 (1) (vii).

The wording of section refers it as 'any sum of money, without consideration' thus it does not use the word gift, however intention here is tax gifts received without consideration.

My question is what if i am

a) Extending a loan to a friend, which he will repay back after some time?

b)Transferring for a very short time in friends Bank account (As his bank was having special arrangements with website where i wanted to pay the money).

Will My friend be taxed for that amount u/s u/s 56 (1) (vii) whereas he never kept that money?
Profile Image

Parveen Bansal

Profile Image

Parveen Bansal (Expert)
06 October 2010 Generally gift is understood to mean transfer of asset without consideration. The section covers the situation of transfer with inadequate consideration.

Transfer means transfer of ownership. Extending loan or giving returnable money is not transfer.

Hence no tax under section 56 (1)(vii).
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
ARTICLESHIP 27 May 2026
CA Article Trainee

Rahul Dang & Associates-Chartered Accountants

Pune

CA Inter

View Details
Company
26 May 2026
Senior Accountant cum purchase Manager

Vardhaman Group of India

Pimpri Chinchwad

CA Inter

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 15 May 2026
Audit Assistant / Article Trainee / Intern

SSGS and Associates

Chennai

CA Inter

View Details
Company
16 May 2026
Audit clerk

mgirt & co

Bengaluru

CA Inter

View Details