The Statutory Brief

IT Act 1961 → 2025 / Section 56

Other sources

Section 56 → Section 92

Income from other sources, including taxable gifts (old 56(2)(x))

Section 56 of the old Income-tax Act, 1961 · new section 92 under the Income-tax Act, 2025

New reference Section 92 (gifts: 92(2)(m))

Income-tax Act, 1961Section 56

  • Residual head for income not under other heads
  • 56(2)(x): gifts of money or property above ₹50,000 from non-relatives taxable
  • Property bought below stamp duty value: excess over higher of ₹50,000 and 10% taxable
  • Gifts from relatives, on marriage, by will/inheritance exempt

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Section 92 (gifts: 92(2)(m))

  • Residual head: section 92
  • Gifts: section 92(2)(m) — money above ₹50,000; property SDV above ₹50,000
  • Purchase below SDV: excess over the higher of ₹50,000 and 10% of consideration
  • Exemptions for relatives, marriage, inheritance retained

Applies from tax year 2026-27 (from 1 April 2026).

What changed

Renumbered; the gift-tax thresholds carry over.

Practice notes

  • Taxable life insurance receipts not exempt under Schedule II are listed in 92(2)(l).
  • Deductions against this head are in section 93 (old 57).

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

Are gifts taxable under the new Income Tax Act 2025?

Yes, under section 92(2)(m): money or property above ₹50,000 received without consideration from non-relatives is taxable; gifts from relatives, on marriage or by inheritance are exempt.

What is section 56 called in the new Income-tax Act, 2025?

Section 56 of the Income-tax Act, 1961 corresponds to Section 92 (gifts: 92(2)(m)) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What changed in section 56 under the new Income Tax Act?

Renumbered; the gift-tax thresholds carry over.

Is section 56 still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 56 of the 1961 Act. Section 92 (gifts: 92(2)(m)) of the 2025 Act applies from tax year 2026-27.

Related sections

57→93Deductions from income from other sources (family pension, interest, dividends)50C→78Stamp duty value as sale consideration for land or building68→102Unexplained cash credits in the books of account