Income from other sources

What is the difference between Section 56(2)(vi) and the newly inserted Section 56(2)(vii), since both states that

in case of Individual and HUF, any money recieved without consideration of an amount exceeding Rs. 50000/-

during a financial year from any person or persons will be treated as income.

Replies (6)

section 56(2)(vi) speaks about the gifts from unrelated persons,whereas Section 56(2)(vii) speaks about gifts as well as property gifted for adequate consideration(its a newly inserted provision from finance act 2010,therefore property is difference between both the clauses

regards

sripal jain

 

56(2)(vi) (before 1.10.2009) = 56(2)(vii) (a) (on or after 1.10.2009).

So the first difference is  the date of applicability. 

56(2)(vii) (b) and 56(2)(vii)(c) with its proviso give more teeth to the Act.

If you read carefully ----- you will find many interesting facts which will force you to confuse.

Keep in mind the different treatments while reading this  dangerous section ------as regards ...

1. Property

2. Movable and immovable Property.

3. Adequate, inadequate and NIL consideration.

4. Aggregate Values and Individual Values of Gifts.

5. Aggeregation of Aggregate values whether will be done or not. 

 

 

 

I want to know the difference in the cash gift part only.
What is the difference other than the date of applicability?

What was the intention of dept in including the cash gift part again in section 56(2)(vii),
when it was already there in sec 56(2)(vi).
 

 

dude u dint get my answr i guess property is included in new section,from 1.10.09 for adequate consideration if u receiva an immovable property u wil be taxed 

@ shripal jain :my q was regarding cash gift only. i know both movable n immoble property was included but y bring out d cash gift again in sec 56(2)(vii) whr it was also dere in sec 56(2)(vi)

@ Mohanty, You are right. 56(2)(vi) itself could be numbered as 56(2)(vi) (a) and the other sub-clauses

could be thereunder.  You may say that an unnecessary exercise was done by the draftsman to this extent.

.

Neverthless, assessee has been benefited by these 2 clauses (vi) and (vii) as they are separated from each other.  In each clause the assessee can claim cash gifts exempt from non relatives upto 50000/ in each of the periods. 

.

 

 

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