Section 56 of ITA, 1961 : Section 56: Income From Other Sources
ITA, 1961
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Explanation using Example
Imagine a scenario where an individual, let's call her Priya, receives a sum of ₹50,000 from a friend as a gift on her birthday. Priya is not related to the friend as per the definition provided in the Income-tax Act. According to Section 56 of the Income-tax Act, 1961, this gift of ₹50,000 is considered income from other sources and is taxable, since it exceeds the threshold of ₹25,000 and does not fall under any of the specified exceptions such as gifts received from relatives or on the occasion of marriage.
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