Section 56(2)(x) of the Income Tax Act, 1961 – Taxation of Gifts and Property Transfers
Introduction to Section 56(2)(x) Section 56(2)(x) was introduced by the Finance Act, 2017, effective from 1 April 2017. It ensures that gifts or property transfers are not misused for tax evasion. It applies to all persons (individuals, HUFs, firms, companies, etc.), making it a wide-ranging anti-abuse provision. Scope of Applicability: Section 56(2)(x) applies when a…