Section - 56 - Widening scope of Income from other sources : -
As per Section 56(2)(vii) any sum
of money or any property which is received without consideration or for
inadequate consideration (in excess of the specified limit of Rs. 50,000) by an
individual or Hindu undivided family is chargeable to income-tax in the hands
of the resident under the head "Income from other sources" subject to
Further, receipt of certain
shares by a firm or a company in which the public are not substantially
interested is also chargeable to income-tax in case such receipt is in excess
of Rs. 50,000 and is received without consideration or for inadequate
The existing definition of
property for the purpose of this section includes immovable property,
jewellery, shares, paintings, etc. These anti-abuse provisions are currently
applicable only in case of individual or HUF and firm or company in certain
cases. However, currently the receipt of
sum of money or property without consideration or for inadequate consideration
is not applicable for other assesses.
In order to increase the scope of
applicability of this section, it is proposed to insert 56 (2) (x) to
include any person instead of individuals and HUF. However, it is also proposed
to widen the scope of existing exceptions by including the receipt by certain
trusts or institutions and receipt by way of certain transfers not regarded as
transfer under section 47.
amendment will be effective from 1st April 2017.