Income Tax Law (B.Com) 5th Sem Previous Year Solved Question Paper 2022

Five incomes that are taxable under section 56(1) of the Income Tax Act:

1. Gifts exceeding Rs. 50,000:
 - Any sum of money or property received as a gift without consideration, where the aggregate value exceeds Rs. 50,000 in a financial year, is taxable. However, certain exemptions apply, such as gifts from specified relatives or gifts received on occasions like marriage.

2. Immovable Property for Less than Stamp Duty Value:
 - If an individual receives an immovable property for a consideration less than its stamp duty value (or circle rate), the difference is treated as taxable income under this section.

3. Movable Property for Less than Fair Market Value:
 - Similar to immovable property, if movable property (excluding specified items like jewelry or art) is received for a consideration less than its fair market value, the shortfall is considered taxable income.

4. Cash Credits:
 - Any sum credited to the taxpayer’s account, and the taxpayer cannot explain the source of such credit, is deemed taxable under this section.

5. Unexplained Investments:
 - If there is an unexplained investment in assets, the value of which exceeds the taxpayer’s known sources of income, the excess is treated as taxable income.