Download - Income Tax Department Sec 56

2/10/2015 IncomeTaxDepartment

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Incomefromothersources

F.IncomefromothersourcesIncomefromothersources.9556.(1)IncomeofeverykindwhichisnottobeexcludedfromthetotalincomeunderthisActshallbechargeable to incometaxunder theheadIncome fromother sources, if it isnotchargeable toincometaxunderanyoftheheadsspecifiedinsection14,itemsAtoE.(2) In particular, and without prejudice to the generality of the provisions of subsection (1), thefollowing incomes, shallbechargeable to incometaxunder theheadIncomefromothersources,namely:(i)dividends96[(ia)incomereferredtoinsubclause(viii)ofclause(24)ofsection2]97[(ib)incomereferredtoinsubclause(ix)ofclause(24)ofsection2]98[(ic) income referred to in subclause (x) of clause (24) of section 2, if such income is not

chargeabletoincometaxundertheheadProfitsandgainsofbusinessorprofession]99[(id)incomebywayofinterestonsecurities,iftheincomeisnotchargeabletoincometaxunder

theheadProfitsandgainsofbusinessorprofession](ii) income from machinery, plant or furniture belonging to the assessee and let on hire, if the

income is not chargeable to incometax under the head Profits and gains of business orprofession

(iii)whereanassesseeletsonhiremachinery,plantorfurniturebelongingtohimandalsobuildings,and the lettingof thebuildings is inseparable from the lettingof the saidmachinery,plantorfurniture, the income from such letting, if it is not chargeable to incometax under the headProfitsandgainsofbusinessorprofession

1[(iv) income referred to in subclause (xi) of clause (24) of section 2, if such income is notchargeabletoincometaxundertheheadProfitsandgainsofbusinessorprofessionorundertheheadSalaries]

2[(v) where any sum of money exceeding twentyfive thousand rupees is received withoutconsiderationbyanindividualoraHinduundividedfamilyfromanypersononorafterthe1stdayofSeptember,20043[butbeforethe1stdayofApril,2006],thewholeofsuchsum:

Providedthatthisclauseshallnotapplytoanysumofmoneyreceived(a)fromanyrelativeor(b)ontheoccasionofthemarriageoftheindividualor(c)underawillorbywayofinheritanceor(d)incontemplationofdeathofthepayeror

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4[(e)fromanylocalauthorityasdefinedintheExplanationtoclause(20)ofsection10or(f) fromany fundor foundationoruniversityorother educational institutionorhospital or

othermedicalinstitutionoranytrustorinstitutionreferredtoinclause(23C)ofsection10or

(g)fromanytrustorinstitutionregisteredundersection12AA.]Explanation.Forthepurposesofthisclause,relativemeans(i)spouseoftheindividual(ii)brotherorsisteroftheindividual(iii)brotherorsisterofthespouseoftheindividual(iv)brotherorsisterofeitheroftheparentsoftheindividual(v)anylinealascendantordescendantoftheindividual(vi)anylinealascendantordescendantofthespouseoftheindividual(vii)spouseofthepersonreferredtoinclauses(ii)to(vi)]

5[(vi) where any sum of money, the aggregate value of which exceeds fifty thousand rupees, isreceivedwithoutconsideration,byan individualoraHinduundividedfamily, inanypreviousyearfromanypersonorpersonsonorafterthe1stdayofApril,20066[butbeforethe1stdayofOctober,2009],thewholeoftheaggregatevalueofsuchsum:Providedthatthisclauseshallnotapplytoanysumofmoneyreceived

(a)fromanyrelativeor(b)ontheoccasionofthemarriageoftheindividual6aor(c)underawillorbywayofinheritanceor(d)incontemplationofdeathofthepayeror(e)fromanylocalauthorityasdefinedintheExplanationtoclause(20)ofsection10or(f) fromany fundor foundationoruniversityorother educational institutionorhospital or

othermedicalinstitutionoranytrustorinstitutionreferredtoinclause(23C)ofsection10or

(g)fromanytrustorinstitutionregisteredundersection12AA.Explanation.Forthepurposesofthisclause,relativemeans(ii)brotherorsisteroftheindividual(iii)brotherorsisterofthespouseoftheindividual(iv)brotherorsisterofeitheroftheparentsoftheindividual(v)anylinealascendantordescendantoftheindividual(vi)anylinealascendantordescendantofthespouseoftheindividual(vii)spouseofthepersonreferredtoinclauses(ii)to(vi)]

7[(vii)wherean individualor aHinduundivided family receives, in anypreviousyear, fromanypersonorpersonsonorafterthe1stdayofOctober,2009,(a) any sum of money, without consideration, the aggregate value of which exceeds fifty

thousandrupees,thewholeoftheaggregatevalueofsuchsum8[(b)anyimmovableproperty,

(i)without consideration, the stampduty valueofwhich exceeds fifty thousand rupees, thestampdutyvalueofsuchproperty

(ii) for a consideration which is less than the stamp duty value of the property by an amount

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exceeding fifty thousand rupees, the stamp duty value of such property as exceeds suchconsideration:

Providedthatwherethedateoftheagreementfixingtheamountofconsiderationforthetransferofimmovablepropertyandthedateofregistrationarenotthesame,thestampdutyvalueonthedateoftheagreementmaybetakenforthepurposesofthissubclause:

Providedfurtherthatthesaidprovisoshallapplyonlyinacasewheretheamountofconsiderationreferredtotherein,orapartthereof,hasbeenpaidbyanymodeotherthancashonorbeforethedateoftheagreementforthetransferofsuchimmovableproperty]

(c)anyproperty,otherthanimmovableproperty,(i) without consideration, the aggregate fairmarket value of which exceeds fifty thousand

rupees,thewholeoftheaggregatefairmarketvalueofsuchproperty(ii)foraconsiderationwhichislessthantheaggregatefairmarketvalueofthepropertybyan

amountexceedingfiftythousandrupees,theaggregatefairmarketvalueofsuchpropertyasexceedssuchconsideration:

Providedthatwherethestampdutyvalueofimmovablepropertyasreferredtoinsubclause(b)isdisputedbytheassesseeongroundsmentionedinsubsection(2)ofsection50C,theAssessingOfficermayrefer thevaluationofsuchproperty toaValuationOfficer,and theprovisionsofsection50Candsubsection(15)ofsection155shall,asfarasmaybe,applyinrelationtothestampdutyvalueofsuchpropertyforthepurposeofsubclause(b)astheyapplyforvaluationofcapitalassetunderthosesections:

Providedfurtherthatthisclauseshallnotapplytoanysumofmoneyoranypropertyreceived(a)fromanyrelativeor(b)ontheoccasionofthemarriageoftheindividualor(c)underawillorbywayofinheritanceor(d)incontemplationofdeathofthepayerordonor,asthecasemaybeor(e)fromanylocalauthorityasdefinedintheExplanationtoclause(20)ofsection10or(f) from any fund or foundation or university or other educational institution or hospital or other

medicalinstitutionoranytrustorinstitutionreferredtoinclause(23C)ofsection10or(g)fromanytrustorinstitutionregisteredundersection12AA.Explanation.Forthepurposesofthisclause,(a) assessable shall have themeaning assigned to it in theExplanation2 to subsection (2) of

section50C(b)fairmarketvalueofaproperty,otherthananimmovableproperty,meansthevaluedetermined

inaccordancewiththemethodasmaybeprescribed9(c)jewelleryshallhavethemeaningassignedtoitintheExplanationtosubclause(ii)ofclause

(14)ofsection2(d)property10[meansthefollowingcapitalassetoftheassessee,namely:]

(i)immovablepropertybeinglandorbuildingorboth(ii)sharesandsecurities(iii)jewellery(iv)archaeologicalcollections(v)drawings(vi)paintings(vii)sculptures11[***]

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(viii)anyworkofart12[or]12[(ix)bullion]

13[(e)relativemeans,(i)incaseofanindividual

(A)spouseoftheindividual(B)brotherorsisteroftheindividual(C)brotherorsisterofthespouseoftheindividual(D)brotherorsisterofeitheroftheparentsoftheindividual(E)anylinealascendantordescendantoftheindividual(F)anylinealascendantordescendantofthespouseoftheindividual(G)spouseofthepersonreferredtoinitems(B)to(F)and

(ii)incaseofaHinduundividedfamily,anymemberthereof](f)stampdutyvaluemeans thevalueadoptedorassessedorassessablebyanyauthorityof the

CentralGovernmentoraStateGovernmentforthepurposeofpaymentofstampdutyinrespectofanimmovableproperty]

14[(viia) where a firm or a company not being a company in which the public are substantiallyinterested,receives,inanypreviousyear,fromanypersonorpersons,onorafterthe1stdayofJune,2010,anyproperty,beingsharesofacompanynotbeingacompanyinwhichthepublicaresubstantiallyinterested,

(i)withoutconsideration, theaggregate fairmarketvalueofwhichexceeds fifty thousand rupees,thewholeoftheaggregatefairmarketvalueofsuchproperty

(ii) for a considerationwhich is less than the aggregate fairmarket value of the property by anamount exceeding fifty thousand rupees, the aggregate fairmarket value of such property asexceedssuchconsideration:

Providedthatthisclauseshallnotapplytoanysuchpropertyreceivedbywayofatransactionnotregardedastransferunderclause(via)orclause(vic)orclause(vicb)orclause(vid)orclause(vii)ofsection47.

Explanation.Forthepurposesofthisclause,fairmarketvalueofaproperty,beingsharesofacompanynotbeingacompany inwhich thepublicare substantially interested, shallhave themeaningassignedtoitintheExplanationtoclause(vii)]

15[(viib) where a company, not being a company in which the public are substantially interested,receives,inanypreviousyear,fromanypersonbeingaresident,anyconsiderationforissueofsharesthat exceeds the face value of such shares, the aggregate consideration received for such shares asexceedsthefairmarketvalueoftheshares:Providedthatthisclauseshallnotapplywheretheconsiderationforissueofsharesisreceived(i)byaventurecapitalundertakingfromaventurecapitalcompanyoraventurecapitalfundor(ii)byacompanyfromaclassorclassesofpersonsasmaybenotifiedbytheCentralGovernment

inthisbehalf.Explanation.Forthepurposesofthisclause,(a)thefairmarketvalueofthesharesshallbethevalue

(i)asmaybedeterminedinaccordancewithsuchmethodasmaybeprescribed16or(ii)asmaybesubstantiatedbythecompanytothesatisfactionoftheAssessingOfficer,based

onthevalue,onthedateofissueofshares,ofitsassets,includingintangibleassetsbeinggoodwill, knowhow,patents, copyrights, trademarks, licences, franchises or anyother

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businessorcommercialrightsofsimilarnature,whicheverishigher(b)venturecapitalcompany,venturecapitalfundandventurecapitalundertakingshallhave

the meanings respectively assigned to them in clause (a), clause (b) and clause (c) of17[Explanation]toclause(23FB)ofsection10]

18[(viii)incomebywayofinterestreceivedoncompensationoronenhancedcompensationreferredtoinclause(b)ofsection145A.]

Thefollowingclause(ix)shallbeinsertedafterclause(viii)ofsubsection(2)ofsection56bytheFinance(No.2)Act,2014w.e.f.142015:

(ix)anysumofmoneyreceivedasanadvanceorotherwiseinthecourseofnegotiationsfortransferofacapitalasset,if,

(a)suchsumisforfeitedand(b)thenegotiationsdonotresultintransferofsuchcapitalasset.

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Download - Income Tax Department Sec 56

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