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Income from other sources section 56(2)

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Pushpraj

student

138 Points Posted on 17 September 2020

Case :

Land purchased,
stamp duty value - Rs. 1,31,00,000
amount paid : Rs. 71,00,000

Whether the difference amount will be consider as income under head other sources under section 56??

Replies (2)

Quick Summary

This discussion clarifies whether the difference between the stamp duty value of a purchased property and the amount actually paid is considered taxable income under Section 56(2) of the Income Tax Act. If this difference exceeds fifty thousand rupees, it is indeed taxable under the head 'Income from Other Sources' for the recipient.

Rohit Gaur

40 Points Posted on 18 September 2020

Definitely, as it exceeds by 50000. it will be taxable in the hands of transfree under head other sources.

Sagar Patel

Tax and Business Consultant

5533 Points Posted on 18 September 2020

As per Section 56(2)(x), any person receives an immovable property for a consideration which is less than the stamp duty value of the property by an amount exceeding fifty thousand rupees, stamp duty value of such property as exceeds such consideration is taxable as income from other sources... So, for you_difference is taxable.