Ankan Mohanty (INTERNAL AUDITOR) (97 Points)
08 November 2011What 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.
CA Sripal Jain
(Associate Finance)
(709 Points)
Replied 08 November 2011
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
CA PARAS BAFNA
(Practising CA )
(33428 Points)
Replied 08 November 2011
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.
Ankan Mohanty
(INTERNAL AUDITOR)
(97 Points)
Replied 09 November 2011
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).
CA Sripal Jain
(Associate Finance)
(709 Points)
Replied 09 November 2011
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
Ankan Mohanty
(INTERNAL AUDITOR)
(97 Points)
Replied 09 November 2011
@ 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)
CA PARAS BAFNA
(Practising CA )
(33428 Points)
Replied 09 November 2011
@ 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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