Explain the taxability or otherwise of the following transactions entered into during the previous year 2019-20 in the hands of the recipients as per provisions contained under the Income-tax Act, 1961 : (ii) Akshat rece

S. No. Taxable or Non-taxable Amount liable to Tax (₹) Reasons as per provisions of Income tax Act, 1961 as to Taxability or Non-Taxability ii) Taxable 1,00,000 As per provisions of section 56(2)(x) of the Income tax Act, 1961, in case the aggregate fair market value of property, other than immovable property, received without consideration exceeds ₹ 50,000 the whole of the aggregate value shall be taxable. In this case, the aggregate fair market value of shares (1000 x 100 = ₹ 1,00,000) exceeds ₹ 50,000. Hence the entire amount of ₹ 1,00,000 shall be taxable. Since, Car is not included in the definition of property for the purpose of section 56(2)(x) of the Income tax Act, 1961, therefore, the value of same of ₹ 5,25,000 shall not be taxable.