If you are receiving any jewellery that could be valued over Rs 50,000 without any payment or with inadequate payment compared to its price be prepared to pay tax. The taxman will be watching yours all such transactions.
The Union Budget 2017-18 announced on day before yesterday proposes amendments to the Income Tax Act to tax such receipts under ‘’income from unknown sources’’. The amendment goes like – there has been a new clause inserted in sub-section (2) of section 56 to provide that receipt of the sum of money by any person without consideration or for inadequate consideration in excess of Rs. 50,000 shall be chargeable to the tax people.
The Memorandum of the Union Budget says, says that presently anti-abuse provisions under the I-T laws are currently applicable only in limited cases of individuals, HUF, firms or companies. Therefore, receipt of sum of money or property without consideration or for inadequate consideration does not attract these anti-abuse provisions in cases of other assesses. The amendments will take effect from April 1, 2017 and the said receipt of sum of money or property on or after April 1, 2017 shall be chargeable to tax in accordance with the provisions of proposed new clause in the income tax.