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CA Intermediate · Taxation · Income from Other Sources

Meera Traders, a partnership firm, received a gift of a vacant plot from the brother of one of its partners during tax year 2026-27. The stamp duty value of the plot is Rs 4,00,000 and no consideration was paid. Under the Income-tax Act, 2025, what is the amount chargeable to tax as income from other sources in the hands of the firm?

Rs 4,00,000 is taxable. A firm cannot claim the exemption for gifts from relatives, which is available only to individuals and HUFs. Since the plot was received without consideration and its stamp duty value exceeds Rs 50,000, the full stamp duty value is income from other sources.

  1. ANil, because the donor is a relative of a partner
  2. BRs 4,00,000Correct
  3. CRs 2,00,000
  4. DRs 3,50,000

Explanation

Immovable property received without consideration is taxable if its stamp duty value exceeds Rs 50,000. The relatives exemption applies only to an individual or HUF recipient, not to a firm. Hence the whole stamp duty value of Rs 4,00,000 is taxable. Nil is wrong because it wrongly extends the relative exemption to a firm.

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