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Others 529 views 2 replies

 

Section 56 Clause (vii)
(b) Makes taxable immovable property transferred without consideration
(c) Makes taxable movable property transferred without consideration (i) & with inadequate consideration (ii)
 
But as per explanation given to the said clause,
(d) Property includes only immovable property being land or building or both;
 
Then is movable property (viz. Motor Car, etc.)transferred without or inadequate consideration  is taxable under other sources or not?
Replies (2)

 

As per Explanation given in Sec 56(2)

  “property” 78 [means the following capital asset of the assessee, namely:—]

       (i)  immovable property being land or building or both;

      (ii)  shares and securities;

     (iii)  jewellery;

     (iv)  archaeological collections;

      (v)  drawings;

     (vi)  paintings;

    (vii)  sculptures; 79 [***]

   (viii)  any work of art; 80 [or]

 80 [(ix)  bullion;]

 

Since the legistaure has used the word "means" for providing definition of property, it means it is exclusive and exhaustive list of property.

Hence, motor car is not covered.

Forgot to mention, that motor car transferred without consideration will not be taxable under Income from Other sources.


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