I have received a land on my birthday from my friend. The stamp value of the land is Rs. 2500000/-. The land is situated in a village and I stay in city. Does this transaction have any impact on my total income and tax payable?
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Greetings from Ssk Advisory. We are happy to resolve your query.
Please note, since you have received the land (immovable property) on your birthday from your friend as a gift, it is fully taxable as per Section 56(2)(x). Moreover, since the market value of the land is more than Rs. 50,000, the entire amount of Rs. 25,00,000/- is taxable under the head "Income from Other Sources" in your tax return.
If you would have received the same on occasion of your marriage or from your relative it may not have been taxable.
Hope we have been able to solve your query. Please comment below in case of any other queries or questions.