Bristo is employed as a marketing manager in a FMCG company. On 20th August, 2023, he received a motor car as gift from a distributor of the company. The market value of the gifted car is estimated at ₹ 3,50,000. Is the

Bristo, an employee of a FMCG company, has received a motor car as a gift from a distributor of the company. Since there is no employer-employee relationship in this case between the distributor and Bristo, the value of gift is not a perquisite chargeable to tax under the head 'Salaries'. Section 56(2)(x) of the Income tax Act, 1961 'the Act', brings within its scope the value of any property received by any person. For this purpose, 'property' means immovable property being land or building or both, shares and securities, jewellery, archaeological collections, drawings, paintings, sculptures, any work of art or bullion. Therefore, for the purpose of attracting the provisions of section 56(2)(x) of the Act for chargeability under the head 'Income from Other Sources', an individual should be in receipt of property as defined therein. Since, motor car is not included in the definition of 'property', the provisions of section 56(2)(x) of the Act would not be attracted in the hands of Bristo. Further As per Sec 28 of the Act, Benefits/Perquisites arising from carrying on business or profession, convertible into money or not; or in cash or in kind or partly in cash and partly in kind is taxable under Head Business or Profession. Since, Bristo is not carrying on Business or Profession, Sec 28 will also not be attracted.