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Home Acts & Rules Income Tax Act Income-tax Act, 1961 Chapters List Part F Income from other sources This

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Section 56 - Income from other sources - Income-tax Act, 1961

Extract

..... hargeable to income-tax under the head "Profits and gains of business or profession"; (iii) where an assessee lets on hire machinery, plant or furniture belonging to him and also buildings, and the letting of the buildings is inseparable from the letting of the said machinery, plant or furniture, the income from such letting, if it is not chargeable to income-tax under the head "Profits and gains of business or profession"; 5[(iv) income referred to in sub-clause (xi) of clause (24) of section 2, if such income is not chargeable to income-tax under the head "Profits and gains of business or profession" or under the head "Salaries";] 6[(v) where any sum of money exceeding twenty-five thousand rupees is received without consideration by an individual or a Hindu undivided family from any person on or after the 1st day of September, 2004 7[but before the 1st day of April, 2006], the whole of such sum : Provided that this clause shall not apply to any sum of money received- (a) from any relative; or (b) on the occasion of the marriage of the individual; or (c) under a will or by way of inheritance; or (d) in contemplation of death of the payer; or .....

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Section 56 - Income from other sources - Income-tax Act, 1961

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..... fter the 1st day of October, 2009 26[ but before the 1st day of April, 2017 ],- (a) any sum of money, without consideration, the aggregate value of which exceeds fifty thousand rupees, the whole of the aggregate value of such sum; 21[(b) any immovable property,- (i) without consideration, the stamp duty value of which exceeds fifty thousand rupees, the stamp duty value of such property; (ii) for a consideration which is less than the stamp duty value of the property by an amount exceeding fifty thousand rupees, the stamp duty value of such property as exceeds such consideration: Provided that where the date of the agreement fixing the amount of consideration for the transfer of immovable property and the date of registration are not the same, the stamp duty value on the date of the agreement may be taken for the purposes of this sub-clause: Provided further that the said proviso shall apply only in a case where the amount of consideration referred to therein, or a part thereof, has been paid by any mode other than cash on or before the date of the agreement for the transfer of such immovable property;] (c) any property, other than immovable property,- (i) without consideration, the .....

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Section 56 - Income from other sources - Income-tax Act, 1961

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..... res; 15[***] (viii) any work of art; 16[or] 17[(ix) bullion;] 19[(e) "relative" means,- (i) in case of an individual- (A) spouse of the individual; (B) brother or sister of the individual; (C) brother or sister of the spouse of the individual; (D) brother or sister of either of the parents of the individual; (E) any lineal ascendant or descendant of the individual; (F) any lineal ascendant or descendant of the spouse of the individual; (G) spouse of the person referred to in items (B) to (F); and (ii) in case of a Hindu undivided family, any member thereof]; (f) "stamp duty value" means the value adopted or assessed orassessable by any authority of the Central Government or a State Government for the purpose of payment of stamp duty in respect of an immovable property;] 18[(viia) where a firm or a company not being a company in which the public are substantially interested, receives, in any previous year, from any person or persons, on or after the 1st day of June, 2010 27[ but before the 1st day of April, 2017 ], any property, being shares of a company not being a company in which the public are substantially interested,- (i) without consideration, the aggregat .....

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Section 56 - Income from other sources - Income-tax Act, 1961

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..... ; or (ii) as may be substantiated by the company to the satisfaction of the Assessing Officer, based on the value, on the date of issue of shares, of its assets, including intangible assets being goodwill, know-how, patents, copyrights, trademarks, licences, franchises or any other business or commercial rights of similar nature, whichever is higher; 34[(aa) “specified fund” means a fund established or incorporated in India in the form of a trust or a company or a limited liability partnership or a body corporate which has been granted a certificate of registration as a category I or a Category II Alternative Investment Fund and is regulated under the Securities and Exchange Board of India (Alternative Investment Fund) Regulations, 2012 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992.) 53[or regulated under the 58[International Financial Services Centre Authority (Fund Management) Regulations, 2022 made under the] International Financial Services Centres Authority Act, 2019 (50 of 2019.)]; (ab) “trust” means a trust established under the Indian Trusts Act, 1882 (2 of 1882.) or under any other law for the time being in force;] (b) .....

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Section 56 - Income from other sources - Income-tax Act, 1961

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..... in relation to the stamp duty value of such property for the purpose of this sub-clause as they apply for valuation of capital asset under those sections; 51[Provided also that in case of property being referred to in the second proviso to sub-section (1) of section 43CA, the provisions of sub-item (ii) of item (B) shall have effect as if for the words “ten per cent.”, the words “twenty per cent.” had been substituted;] (c) any property, other than immovable property,- (A) without consideration, the aggregate fair market value of which exceeds fifty thousand rupees, the whole of the aggregate fair market value of such property; (B) for a consideration which is less than the aggregate fair market value of the property by an amount exceeding fifty thousand rupees, the aggregate fair market value of such property as exceeds such consideration: Provided that this clause shall not apply to any sum of money or any property received- (I) from any relative; or (II) on the occasion of the marriage of the individual; or (III) under a will or by way of inheritance; or (IV) in contemplation of death of the payer or donor, as the case may be; or (V) from any local author .....

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Section 56 - Income from other sources - Income-tax Act, 1961

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..... person referred to in sub-section (3) of section 13.] 56[Explanation.-For the purposes of this clause,- (a) the expressions “assessable”, “fair market value”, “jewellery”, “relative” and “stamp duty value” shall have the same meanings as respectively assigned to them in the Explanation to clause (vii); and (b) the expression “property” shall have the same meaning as assigned to it in clause (d) of the Explanation to clause (vii) and shall include virtual digital asset.]] 31[(xi) any compensation or other payment, due to or received by any person, by whatever name called, in connection with the termination of his employment or the modification of the terms and conditions relating thereto.] 59[(xii) any specified sum received by a unit holder from a business trust during the previous year, with respect to a unit held by him at any time during the previous year. Explanation.-For the purposes of this clause, ''specified sum'' shall be computed in accordance with the following formula, namely:- Specified sum=A-B-C (which shall be deemed to be zero if sum of B and C is greater than A), where- A=aggre .....

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Section 56 - Income from other sources - Income-tax Act, 1961

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..... and shall be deemed to have been substituted with effect from the 1st day of October, 2009, vide Finance Act, 2010 before this it was read as, " (b) any immovable property,- (i) without consideration, the stamp duty value of which exceeds fifty thousand rupees, the stamp duty value of such property; (ii) for a consideration which is less than the stamp duty value of the property by an amount exceeding fifty thousand rupees, the stamp duty value of such property as exceeds such consideration". 14. In the Explanation, in clause (d), in the opening portion, for the word "means-", the words "means the following capital asset of the assessee, namely:-" has been substituted and shall be deemed to have been substituted with effect from the 1st day of October, 2009 vide Finance Act, 2010. 15. In sub-clause (vii), the word "or" has been omitted with effect from the 1st day of June, 2010 vide Finance Act, 2010. 16. In sub-clause (viii), the word "or" has been inserted at the end with effect from the 1st day of June, 2010 vide Finance Act, 2010. 17. After sub-clause (viii), the following sub-clause has been inserted with effect from the 1st da .....

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Section 56 - Income from other sources - Income-tax Act, 1961

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..... 01-04-2020 before it was read as "bank account" 37. Inserted vide FINANCE (NO. 2) ACT, 2019 w.e.f. 01-04-2020 38. Substituted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-06-2020 before it was read as "section 12AA" 39. Substituted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-06-2020 before it was read as "section 12AA" 40. Substituted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-06-2020 before it was read as "section 12AA" 41. Substituted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-04-2021 before it was read as "five per cent." 42. Substituted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-06-2020 before it was read as "section 12A or section 12AA" 43. Substituted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-06-2020 before it was read as "38[section 12AA or section 12AB]" 44. Substituted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-06-2020 before it was read as "39[section 12AA or section 12AB]" 45. Substituted vide THE TAXATION AND .....

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Section 56 - Income from other sources - Income-tax Act, 1961

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  1. 35/2023 - Dated: 31-5-2023 - Income-tax (Eighth Amendment) Rules, 2023 - Exemption to buyers of PSU shares during selloff under strategic disinvestment
  2. 30/2023 - Dated: 24-5-2023 - Angle Tax - Start-ups Recognized by DPIIT - Provision of section 56(2)(viib) of IT Act 1961, shall not apply to consideration received by a company for issue of shares that exceeds the face value of such shares in the case of Startup, subject to conditions - Supersession Notification No. 13/2019 dated 5th March 2019
  3. 29/2023 - Dated: 24-5-2023 - Angle Tax - Investment in start-ups from 21 countries - Provision U/s 56(2)(viib) of IT Act 1961 shall not apply in respect of Exemption from any consideration for issue of shares that exceeds the face value of such shares, the aggregate consideration received for such shares as exceeds the fair market value of the shares - Central Government notifies class or classes of persons
  4. 92/2022 - Dated: 5-8-2022 - U/s 56 (2) of Income Tax Act 1961, Central Government specifies conditions for individual
  5. 91/2022 - Dated: 5-8-2022 - U/s 56 (2) of IT Act 1961, Central Government specifies the conditions for individual.
  6. 105/2021 - Dated: 10-9-2021 - Income-tax (28th Amendment) Rules, 2021. - Deemed income / Gift - Section 56(2)(x) - not applicable to any movable property, being equity shares, of the public sector company, received by a person from the Central Government or any State Government under strategic disinvestment
  7. 40/2020 - Dated: 29-6-2020 - Income-tax (14th Amendment) Rules, 2020.
  8. 12/2020 - Dated: 17-2-2020 - Income tax Amendment (6th Amendment), Rules, 2020.
  9. 08/2020 - Dated: 29-1-2020 - Income-tax (3rd Amendment) Rules, 2020
  10. 96/2019 - Dated: 11-11-2019 - Income tax Amendment (13th Amendment), Rules, 2019
  11. 13/2019 - Dated: 5-3-2019 - Provision of section 56(2)(viib) of IT Act 1961, shall not apply to consideration received by a company for issue of shares that exceeds the face value of such shares in the case of Startup.
  12. G.S.R. 127(E) - Dated: 19-2-2019 - Eligibility criteria for an entity to be considered as Startup w.e.f 19-2-2019
  13. 09/2019 - Dated: 31-1-2019 - Amendment in Notification No. S.O. 2088(E) dated the 24th May, 2018
  14. G.S.R. 34(E) - Dated: 16-1-2019 - Modification Notification No. G.S.R. 364 (E)dated April 11, 2018
  15. 85/2018 - Dated: 6-12-2018 - U/s 115JG(1) of IT ACt 1961 - Central Government notifies conditions a foreign company engaged in the business of banking in India
  16. 24/2018 - Dated: 24-5-2018 - Relaxation from the conditions of issue of shares at premium in excess of Fire Market Value u/s 56(2)(viib) where approval has been granted by the Inter-Ministerial Board of Certification
  17. 23/2018 - Dated: 24-5-2018 - Income-tax (6th Amendment), Rules, 2018 - Determination of FMV of shares and securities - Now only merchant bank can give the valuation report for the purpose of section 56.
  18. G.S.R. 364(E) - Dated: 11-4-2018 - Recognition of an eligible entity as startup - revised policy
  19. 61/2017 - Dated: 12-7-2017 - Income-tax (20th Amendment), Rules, 2017 - Determination of fair market value of unquoted equity shares and other than a quoted share
  20. 45/2016 - Dated: 14-6-2016 - CBDT- startup - Tax Exemption on Investments above Fair Market Value
  1. Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012
  2. Securities and Exchange Board of India Act, 1992
  3. Section 59 - Profits chargeable to tax - Income-tax Act, 1961
  4. Section 57 - Deductions - Income-tax Act, 1961
  5. Section 51 - Advance money received - Income-tax Act, 1961
  6. Section 50C - Special provision for full value of consideration in certain cases - Income-tax Act, 1961
  7. Section 49 - Cost with reference to certain modes of acquisition - Income-tax Act, 1961
  8. Section 47 - Transactions not regarded as transfer - Income-tax Act, 1961
  9. Section 43CA - Special provision for full value of consideration for transfer of assets other than capital assets in certain cases. - Income-tax Act, 1961
  10. Section 270A - Penalty for under-reporting and misreporting of income. - Income-tax Act, 1961
  11. Section 2(15A) to 2(30) - Definitions [Clause (15A) to Clause (30)] - "Chief Commissioner" to "Non-resident" - Income-tax Act, 1961
  12. Section 2(1) to 2(15) - Definitions [Clause (1) to Clause (15)] - "Advance Tax" to "Charitable Purpose" - Income-tax Act, 1961
  13. Section 194IA - Payment on transfer of certain immovable property other than agricultural land - Income-tax Act, 1961
  14. Section 155 - Other amendments - Income-tax Act, 1961
  15. Section 145B - Taxability of certain income - Income-tax Act, 1961
  16. Section 145A - Method of accounting in certain cases - Income-tax Act, 1961
  17. Section 14 - Heads of income - Income-tax Act, 1961
  18. Section 13 - Section 11 not to apply in certain cases - Income-tax Act, 1961
  19. Section 12AB - Procedure for fresh registration - Income-tax Act, 1961
  20. Section 12AA - Procedure for registration - Income-tax Act, 1961
  21. Section 12A - Conditions for applicability of sections 11 and 12 - Income-tax Act, 1961
  22. Section 102 - Definitions - Income-tax Act, 1961
  23. Section 10(17A) to 10(23C) - Incomes not included in total income [Clause (17A) to Clause (23C)] - Income-tax Act, 1961
  24. Section 10(1) to 10(10D) - Incomes not included in total income [Clause (1) to Clause (10D)] - Income-tax Act, 1961
  25. Rule 6ABBA - Other electronic modes - Income-tax Rules, 1962
  26. Rule 11UAC - Prescribed class of persons for the purpose of clause (XI) of the proviso to clause (x) of sub-section (2) section 56 - Income-tax Rules, 1962
  27. Rule 11UA - Determination of Fair Market Value - Income-tax Rules, 1962
  28. Manual - Sec 51 - Treatment of Advance Money received
  29. Manual - Sec. 45(4) and Sec 9B - Treatment on transfer of capital asset to partner/member on dissolution or reconstitution of specified entity.
  30. Manual - Valuation Rules
  31. Manual - Sec. 56(2)(ix) - Advance money forfeited
  32. Manual - Sec. 56(2)(viii) - Interest on compensation
  33. Manual - Sec. 56(2)(viib) - Share premium received by closely held company
  34. Manual - Sec. 56(2)(viia) - Gift received by firm or closely held company
  35. Manual - [Sec. 56(2)(vii)] - Gifts received by Individual & HUF
  36. Manual - Sec 56(1) and (2) - Chargeable Income Under Income from Other Sources
  37. Manual - Composite Rent