Search Results For: 2(14)

Whether Gift Received Of Agricultual Land Is A Property For Section 56?

QUERY: As per S. 56(2)(vii)(b), when an individual or HUF receives, on or after 1.10.2009, any immovable property without consideration, the stamp duty value of which exceeds Rs. 50,000, the stamp duty value of such property is chargeable to tax u/s. 56(2)(vii)(b). Agricultural land {which is not capital asset u/s. 2(14)} is immovable property. Therefore, is stamp duty value of agricultural land received {which land is admittedly not a capital asset u/s 2(14)} without consideration chargeable under this clause? This question arises since 2nd proviso to S. 56(2)(vii) inter alia provides that property received from any relative is not covered by this clause. The term ‘property’ is defined in Explanation (d) to S. 56(2)(vii) to mean the following capital asset of the assessee, namely, (i) immovable property being land or building or both. Thus, property is defined to mean capital asset namely immovable property being land or building or both but 56(2)(vii)(b) does not use the word ‘property’ but directly makes a reference to immovable property. The question is whether the term ‘capital asset’ used in Explanation (d) should be understood as it is defined in S. 2(14) or should it be understood to mean something which is not stock-in-trade?
ANSWER: Click here to read the full answer of the expert

Yes, stamp duty value of agricultural land received without consideration exceeding Rs. 50,000/- is chargeable u/s. 56(2)(vii) of the Act except property received from relatives. The explanation (d) to the section

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