Section 56(2)(x) – A Treatise

This book provides a complete guide on the provisions of Section 56(2)(x). Deemed income arises under this provision when any person receives gifts or acquires an immovable property or specified movable assets without consideration or for inadequate consideration.

Section 56(2)(x) engages significant time and attention of all taxpayers and tax practitioners while planning and structuring any commercial transaction.

This book is a compilation of chapters written by three different authors, each one of whom has a different mindset and a different professional background and experience. This book is updated up to the Finance Act, 2020.

Key Features:

• Practical understanding of each and every aspect of Section 56(2)(x)
• Highlights various issues and discrepancies arising out of Section 56(2)(x)
• Detailed and holistic exposition of each and every issue like ‘receipt’, ‘consideration’, etc.
• Detailed and thorough analysis of Rule 11U and Rule 11UA

Contents of the Book:

• Legislative history of Section 56(2)(x)
• Basic scope of Section 56(2)(x)
• Interpretation of words ‘Receive’ & ‘Consideration’
• Place of Receipt
• Scope of the term ‘Property’
• Taxation in case of restructuring
• Exemptions from the applicability of Section 56(2)(x)
• Applicability of Section 56(2)(x) to Private Trusts
• Other connected provisions [Section 2(24), 49, 50C, 50CA, 56(2)(viib), 68 & GAAR]
• Implications of Rules 11U and 11UA
• Appendices
  • Relevant Sections of the Income-tax Act, 1961
  • Relevant Rules of the Income-tax Rules, 1962