is section 56(2)(x) is applicable to a property purchased in bank auction?
If no kindly provide the relevant extracts to prove the same
Menu
Auctioned property and applicability of section 56(2)(x)
Replies (1)
Section 56(2)(x) of the Income Tax Act is applicable to all kinds of property received as a gift or inheritance, without consideration, which includes immovable property such as land, buildings, or any rights in such property. This section is applicable when the fair market value (FMV) of the property received exceeds Rs. 50,000.
In the case of a property purchased in a bank auction, the consideration for the purchase is paid by the bidder, and hence it is not received as a gift or inheritance. Therefore, Section 56(2)(x) is not applicable to a property purchased in a bank auction.
In the case of a property purchased in a bank auction, the consideration for the purchase is paid by the bidder, and hence it is not received as a gift or inheritance. Therefore, Section 56(2)(x) is not applicable to a property purchased in a bank auction.
Recent Topic
- Input tax credit under igst under insurance compan
- ITR Form to be used
- CGAS account Holder Deceased
- ITR form suggestion
- Post office KVP income.
- Free GST invoice tool I built for my practice R
- Clarification on Gratuity Exemption under Section
- GOODS AND SERVICE TAX - GSTR 1
- Correct ITR form
- Clarification required on Section 393 & Report
Related Topics
CAclubindia
