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Section 56 of the Income Tax Act, 1961 is very important in India's taxation system because it deals with incomes that do not fit into the main categories of income. These include salary, house property, business or profession, and capital gains. Introduced to cover the tax on miscellaneous incomes, this section is key to making sure all kinds of money earned gets taxed correctly. All in all, this section ensures that there is no place for avoiding taxes even through unconventional sources.

Introduction of Section 56(2)(x): Enhancing Taxability

Section 56(2)(x) was brought in by the Finance Act, 2017. This part substitutes the old rules of Section 56(2)(vii) and Section 56(2)(viia). The new subsection includes all persons for taxation and not just individuals and HUFs. It stops tax evasion through non-individual entities, making sure a broader framework of taxation is applied.

Tax Implications for Immovable Property Transactions

Section 56 of the Income Tax Act also speaks about tax for immovable property gotten without any consideration or with inadequate consideration. If stamp duty value is higher than what has been paid as consideration, and this difference goes over Rs. 50,000 then it becomes income from other sources which is taxable. This rule is crucial for dealing with the problem of properties being undervalued during transactions, a typical tactic used to dodge tax.

Income from Other Sources

Section 56 is an all-inclusive rule as it includes different types of incomes that aren't specifically placed under other heads of income. This comprises subletting incomes, interest on securities, dividends, winnings from lotteries or crossword puzzles and so on. By covering these miscellaneous incomes, the section makes sure all sources of income are liable for taxation to keep the tax system's honesty intact.

Judicial Interpretations and Precedents of Section 56

As time passes, Section 56 is interpreted by many courts. Some important parts that are ruled upon include what counts as 'property', when exemptions can be used and how certain types of income should be treated. These decisions from the past help to make clear and give direction in using this section correctly, making sure tax administration stays fair and uniform.

Effective Tax Planning and Compliance Under Section 56

For people who pay tax, knowing Section 56 of the Income Tax Act is very important to do better planning and follow rules accurately. Making sure gifts are documented and valued correctly, understanding when exemptions apply and the limits involved can help reduce how much tax needs to be paid. Not following or misunderstanding these rules might cause penalties or legal problems for taxpayers, so it's very important they have good knowledge about this section.

Understanding the Comprehensive Scope of Section 56

Section 56 is famous for its broad application. It covers many kinds of incomes like gifts, lotteries and crossword prizes, races (including horse racing) plus others that don't fit into any other income category. Section 56 has an aim to include in the tax net those incomes which might avoid being taxed because they are just different from normal ones.

Taxation of Gifts Received: Core Aspect of Section 56

Section 56 of the Income Tax Act holds a very important place in the law because it instructs us to tax gifts that people receive. It states that any sum of money or property, which is given as a gift without any return, can be considered for taxation if it passes a certain limit during one financial year's time. This part has special significance when we talk about controlling the wrong use of gifts as a method to move wealth from one person or group into another without considering taxes on it.

Detailed Examination of Sub-Section 56(2)(vii): Gifts in Kind

Sub-Section 56(2)(vii) is about the tax on gifts gotten in kind. It pertains to any property received without payment or for less than its value by an individual or Hindu Undivided Family (HUF). The meaning of 'property' is comprehensive here, encompassing immovable property, shares and securities, jewelry as well as archaeological collections along with drawings - paintings - sculptures etcetera many more such items that are considered works of art. This subsection includes the receipt of valuable assets as gifts in the domain of tax.

Exemptions Under Section 56 for Gifts

Section 56 of the Income Tax Act sets out certain exemptions to avoid causing undue hardship when gifts are taxed. These exceptions cover gifts given by specified relatives, during marriage events, under a will or inherited in anticipation of death; additionally they include those received from local authorities and registered trusts or institutions. The exemptions are crucial to prevent unfair taxation on real and customary wealth transfers, maintaining the cultural and societal norms.

Exemptions for Relatives

In Section 56, "relatives" is a term that covers different family connections. It includes the spouse, brother or sister, brother-in-law or sister-in-law, uncle or aunt on either parent's side and any lineal ascendant or descendant. Gifts from these people do not need tax payment. This shows understanding for the family nature of gift giving.

Also Read: What Are The Taxes Levied On Gifts For Individuals?

Exemptions for Certain Occasions

There is no tax on gifts received by the individual during the time of marriage, as per Section 56. This rule recognizes the importance of gift-giving in our culture and makes sure that no tax is applied to such traditional customs.

Threshold Limits

The maximum amount of Rs. 50,000 is very important to decide if gifts are subject to tax or not. Any money or property received without giving something back that goes beyond this limit in one year of finance will be taxed. Threshold limit of Rs. 50,000 is very essential for deciding gift taxability; any money or property received without giving anything in return that exceeds this limit within a financial year will be considered taxable. The threshold limit of Rs. 50,000 has an important role in deciding if gifts should be taxed or not; every sum of money / value received without consideration which cross this boundary within a financial year will become taxable

Threshold Limit is a very important part in deciding whether the gift should be subjected to taxes or not; every sum of money/value received without consideration that cross this boundary within one financial year becomes taxable This limit is in place so that smaller presents do not get taxed, concentrating on substantial movements which might have tax consequences.

Taxation of Monetary Gifts

Furthermore, Section 56 of the Indian Income Tax Act has rules about taxing monetary gifts. When an individual or HUF gets any sum of money without getting anything in return and its total amount is more than Rs. 50,000 within one financial year, all that money becomes taxable as income from other sources. This rule is very important because it includes big cash gifts within the tax net, tackling the problem of black money.

Detailed Analysis of Key Sub-Sections Under Section 56

Sub-Section 56(2)(viib): Taxation of Shares and Securities

Sub-Section 56(2)(viib) talks about tax on shares and securities that are received by a closely held company. If a company gets any kind of consideration for giving out shares, and this amount is more than what's seen as fair market value, then the extra part will be taxed as income from other sources. The rule's goal is to stop companies from avoiding taxes when they give out shares at higher prices than those found on the market.

Sub-Section 56(2)(viii): Interest Income

Sub-Section 56(2)(viii) is for tax on interest income. When a person gets any interest, it's regarded as income from other sources for compensation or improved compensation. This covers the situation of receiving interest on delayed payments related to acquiring property, making sure that such interest earnings are liable to tax.

Sub-Section 56(2)(ix): Forfeited Advance Money

In Sub-Section 56(2)(ix), it is stated that if you receive advance money and keep it for the purpose of transferring a capital asset, then later this money gets forfeited but there's no transfer happening due to failed negotiations - such amount will be considered as income from other sources. The purpose behind this particular provision is to make sure no forfeited amount goes untaxed.

Sub-Section 56(2)(x): Comprehensive Coverage

Like it was said before, Section 56(2)(x) came in to broaden the range of Section 56. This part includes receiving any amount of money, immovable property or other properties by a person. It makes sure that these receipts are taxed unless they fall under particular exemptions. This subsection strengthens the taxation for different forms of wealth transfer and enhances the toughness of the tax system.

Also Read: Understanding Section 80C: How to Maximize Your Tax Savings

Practical Implications of Section 56 with Examples

Taxation of Gifts Received on Marriage

Imagine a situation where someone gets cash presents of Rs. 1,00,000 from their friends as they get married. As per Section 56(2)(x), usually these gifts are subject to tax. But, as the presents are given at time of marriage and come into this category, they do not have tax on them.

Immovable Property Received Below Stamp Duty Value

Imagine a person who purchases a property worth Rs. 40,00,000, however the stamp duty value for this property is Rs. 50,00,000. The amount of Rs. 10,00,000 variation is seen as taxable income from other sources according to Section 56(2)(x). This rule is very important because it makes sure the transaction displays its real market value and halts any attempts to undervalue for tax benefits.

Shares Issued Above Fair Market Value

A private company that is closely held sells shares for Rs. 150 each, but the fair market value of a share is Rs. 100. The extra Rs. 50 per share is taxable according to Section 56(2)(viib), which keeps companies from giving shares at high prices just to evade tax on the excessive amount.

Impact of Section 56 on Taxpayers and Tax Administration

For Taxpayers

For those paying taxes, Sec 56 in the Income Tax Act brings another level of difficulty into tax planning. People and entities must recognize what kinds of income this section encompasses, keep good documentation, and follow the rules to not get penalties. Having a correct understanding and observing these provisions could result in successful control over taxes as well as reducing one's tax responsibility.

For Tax Administration

Section 56 is useful for tax authorities because it gives a way to tax miscellaneous incomes that could possibly avoid being taxed. This helps in increasing the range of taxable items and making sure all types of income are correctly taxed. The rules about gifts and other certain incomes also help stop tax evasion through non-traditional methods.

Also Read: A Guide to Tax Saving Under Section 10 (10D) of Income Tax

Comparative Analysis with Global Tax Systems

Gift Taxation in the United States

The gift tax in the United States is a tax that individuals must pay when they give property to another person without getting anything or getting less than full value in return. The yearly exclusion for gifts is $15,000 per receiver. If the value of a gift goes over this amount, then it becomes liable for taxation just like Section 56.

Gift Taxation in the United Kingdom

In the United Kingdom, there is an inheritance tax that also covers gifts given during a person's life if they pass away within seven years of giving the gift. This method differs from Section 56, which taxes gifts when received instead of considering the donor's lifespan. But both systems are designed to stop tax avoidance through large wealth transfers.

Gift Taxation in Australia

Australia does not have a gift tax, but giving gifts can affect capital gains tax. If someone gives a present that would've led to making a capital gain, the giver might be liable for paying capital gains tax on its market worth. This is different from Section 56 where it's the receiver of the gift who pays tax directly.

Future Trends and Potential Reforms

Potential Reforms

Possibly, there could be future improvements to make Section 56 and how it's used even more straightforward. This might involve clearer instructions about how to evaluate various kinds of property, better exceptions for certain types of transfers or stricter actions against misuse of these exceptions.

Digitalization and Data Analytics

As the tax system gets more digital and starts using data analytics, we can expect Section 56 to be enforced stronger than now. Authorities might use advanced analysis methods to keep an eye on significant transactions and gifts, making sure they follow the rules while also finding possible instances of tax avoidance or fraud.

Global Harmonization

In the future, as worldwide tax systems change and get more complex, there could be a trend to standardize tax laws about gifts and other money. This might include making Indian tax laws match with global standards, giving uniformity and justice in taxing transfers and dealings across borders.

In Conclusion

The section 56 of the Income Tax Act, 1961 is a key part of India's tax system. Its broad rules about taxing gifts received and other miscellaneous incomes make sure all types of income get their due taxation, keeping the whole setup intact. It is crucial for taxpayers and professionals in tax matters to comprehend and follow the provisions under this section. It helps in maintaining obedience with the law, maximising tax responsibilities while also adding towards a just and fair system for levying taxes.

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FAQS – FREQUENTLY ASKED QUESTIONS

  • Will a cash gift from a husband to his wife be taxable under Section 56(2)(x) ?

    Cash gifts from a husband to wife will be exempted from tax, irrespective of the amount, under section 56(2)(x) of the Income Tax Act. However, a person cannot receive more than Rs. 2 lakhs from another person in a single transaction and in a single day.

  • As per the income tax law what constitutes an income ?

    According to the income tax laws, the meaning of income is extremely broad and all-encompassing. For instance, anything received by a salaried individual in cash or kind is considered as an income and for a business person, income includes net profit gained from the businesses. Moreover, income also entails interests, commissions and dividends. Also, a person may earn income even from the sale of buildings, gold, and land among others. Income tax is computed based on the provisions of the Income Tax Act, 1961 and specific to the different heads of income.

  • What is Angel taxation ?

    As per the section 56(2)(x) of the IT Act, 1961, tax is levied on a company that issues equity shares at a price that is more than the fair market value of the share price. So, for instance, if a company has issued 5,000 shares for Rs. 100 each, the fair market cost is determined at Rs. 10 per share. Rs. 4,50,000 will be the taxable amount. But there is an exemption levied if the company is registered with Startup India and has filed Form 2 and has a valid DPIIT.

 

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The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.

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You agree that Facilities Provider / ABC Companies has no liability, obligation or responsibility for any such correspondence, purchase or promotion between you and any other ABC Companies and/or third parties.

Third party websites

This Website may be linked to other websites (including those of ABC Companies) on the World Wide Web that are not under the control of or maintained by ABCL. Such links do not indicate any responsibility or endorsement on our part for the external website concerned, its contents or the links displayed on it. These links are provided only as a convenience, in order to help you find relevant websites, facilities and/or products that may be of interest to you, quickly and easily. It is your responsibility to decide whether any facilities and/or products available through any of these websites are suitable for your purposes. The Facilities Provider or ABCL is not responsible for the owners or operators of these websites or for any goods or facilities they supply or for the content of their websites and does not give or enter into any conditions, warranties or other terms or representations in relation to any of these or accept any liability in relation to any of these (including any liability arising out of any claim that the content of any external web site to which this web site includes a link infringes the intellectual property rights of any third party).

USE of APP

In case any facilities/services, access/dissemination of information or execution of transaction is done through use of any APP related to ABC Companies, the additional terms and conditions governing the Use of APP shall be applicable and to be read along these Terms of Use.

Postings and monitoring

The Facilities Provider or ABCL or ABC Companies does not routinely monitor your postings to the Website but reserves the right to do so if deemed necessary if it is related to the facilities offered on the web site and to comply with law. However, in our efforts to promote good citizenship within the internet community, if the Facilities Provider or ABCL or ABC Companies becomes aware of inappropriate use of the Website or any of its facilities, any information, opinions, advice or offers posted by any person or entity logged in to the Website or any of its associated sites is to be construed as public conversation only, and the Facilities Provider or ABC Companies shall not be liable or responsible for such public conversation. You agree that in such cases, we will respond in any way that, in our sole discretion, as deemed appropriate. You acknowledge that Facilities Provider or ABC Companies will have the right to report to law enforcement authorities any actions that may be considered illegal, as well as any information it receives of such illegal conduct. When requested, ABC Companies/Facilities Provider will co-operate fully with law enforcement agencies in any investigation of alleged illegal activity on the internet.

Submissions and unauthorized use of any Materials contained on this Website may violate copyright laws, trademark laws, the laws of privacy and publicity, certain communications statutes and regulations and other applicable laws and regulations. You alone are responsible for your actions or the actions of any person using your user name and/or password. As such, you shall indemnify and hold Facilities Provider, ABCL / ABC Companies and its officers, directors, employees, affiliates, agents, licensors, and business partners harmless from and against any and all loss, costs, damages, liabilities, and expenses (including attorneys' fees) incurred in relation to, arising from, or for the purpose of avoiding, any claim or demand from a third party that your use of the Website or the use of the Website by any person using your user name and/or password (including without limitation your participation in the posting areas or your submissions) violates any applicable law or regulation, or the rights of any third party.

We reserve the right to terminate access to this Website at any time and without notice. Further this limited license terminates automatically, without notice to you, if you breach any of these Terms of Use. Upon termination, you must immediately destroy any downloaded and printed Materials.

If you come across any breaches/violation or offensive material you must report to us at abc.secretarial@adityabirla.com

Use of Cookies

You agree and understand that the Website will automatically receive and collect certain anonymous information in standard usage logs through the Web server, including computer/computer resource-identification information obtained from "cookies" sent to your browser from a web server or other means as explained in the Privacy Policy.  

Facilities Changes and Discontinuation

The Website reserves the right to discontinue or suspend, temporarily or permanently, the facilities. You agree that the Facilities Provider/ ABC Companies will not be liable to you in any manner whatsoever for any modification or discontinuance of the facilities. The format and content of this Website may change at any time. We may suspend the operation of this Website for support or maintenance work, in order to update the content or for any other reason.

ABCL, ABC Companies, and its directors, employees, associates, or other representatives shall not be liable for any damages or injury, arising out of or in connection with the use, or non-use including non-availability of the Website and also for any consequential loss or any damages caused because of non-performance of the system due to a computer virus, system failure, corruption of data, delay in operation or transmission, communication line failure, or any other reason whatsoever. The Website will not be responsible for any liability arising out of delay in providing any information on the Website.

Compliance with the Law

You agree that you will not:

  • Use any robot, spider, scraper, deep link or other similar automated data gathering or extraction tools, programme, algorithm or methodology to access, acquire, copy or monitor the Website, or any portion of the Website.
  • Use or attempt to use any engine, software, tool, agent, or other device or mechanism (including without limitation, browsers, spiders, robots, avatars or intelligent agents) to navigate or search the Website, other than the search engines generally available by third party web browsers
  • Post or transmit any file which contains viruses, worms, Trojan horses or any other contaminating or destructive features, or that otherwise interferes with the proper working of the Website or the facilities.
  • Attempt to decipher, decompile, disassemble, or reverse engineer any of the software, comprising or in any way making up a part of the Website or the facilities.
  • You agree not to use the facilities for illegal purposes or for the transmission of material that is unlawful, harassing, libelous (untrue and damaging to others), invasive of another's privacy, abusive, threatening, or obscene, or that infringes the rights of others.

Restrictions on Commercial Use or Resale

Your right to use the facilities is personal to you; therefore, you agree not to resell or make any commercial use of the facilities. In addition, the Website welcomes your feedback as a user of the facilities. Any feedback you provide will become the confidential and proprietary information of the Website, and you agree that the Website may use in any manner and without limitation, all comments, suggestions, complaints, and other feedback you provide relating to the Website. The Website shall have a worldwide, royalty-free, non-exclusive, perpetual, and irrevocable right to use feedback for any purpose, including but not limited to incorporation of such feedback into the Website or other Website software or facilities.

No Endorsements

All product and facilities marks contained on or associated with the facilities that are not the Website marks are the trademarks of their respective owners. The Website would require you to respect the same. References to any such names, marks, products or facilities of third parties or hypertext links to third party sites or information does not imply the Website’s endorsement, sponsorship or recommendation of the third party, information, product or facilities.

Promotional Offers

You may receive from time to time, announcement about offers with intent to promote this Website and/or facilities/products of ABC Companies (“Promotional Offers”). The Promotional Offer(s) would always be governed by these Terms of Use plus certain additional terms and conditions, if any prescribed. The said additional terms and conditions, if prescribed, would be specific to the corresponding Promotional Offer only and shall prevail over these Terms of Use, to the extent they may be in conflict with these Terms of Use. The Website reserves the right to withdraw, discontinue, modify, extend and suspend the Promotional Offer(s) and the terms governing it, at its sole discretion.

Charges for use of Website

There are no charges or fees to be paid by you for use of this Website. However, you are responsible for all telephone access fees and/or internet service fees that may be assessed by your telephone and/or internet service provider. You further agree to pay additional charges, if any levied by Third Party Service Provider(s), for the facilities provided by them through the Website (Additional Charges).

No Endorsement

You are advised to be cautious when browsing on the internet and to use good judgment and discretion when obtaining information or transmitting information. From this Website, users may visit or be directed to third party web sites. The Website makes no effort to review the content of these web sites, nor is the Website or its licensors responsible for the validity, legality, copyright compliance, or decency of the content contained in these sites.

In addition, the Website does not endorse or control the content of any other user and is not responsible or liable for any content, even though it could be unlawful, harassing, libelous, privacy invading, abusive, threatening, harmful, vulgar, obscene or otherwise objectionable, or that it infringes or may infringe upon the intellectual property or other rights of another. You acknowledge that the Website does not pre-screen content, but that the Website will have the right (but not the obligation) in their sole discretion to refuse, edit, move or remove any content that is available via the facilities.

Electronic Communications

These Terms of Use and any notices or other communications regarding the Facilities may be provided to you electronically, and you agree to receive communications from the Website in electronic form. Electronic communications may be posted on the Website and/or delivered to your registered email address, mobile phones etc either by Facilities Provider or ABC Companies with whom the services are availed. All communications in electronic format will be considered to be in "writing". Your consent to receive communications electronically is valid until you revoke your consent by notifying of your decision to do so. If you revoke your consent to receive communications electronically, the Facilities Provider shall have the right to terminate the facilities.

Assignment

You shall not assign your rights and obligations under this Agreement to any other party. The Website may assign or delegate its rights and/or obligations under this Agreement to any other party in future, directly or indirectly, or to an affiliated or group company.

Legal Disclaimers

The information provided on or through the Website is for general guidance and information purposes only and they do not in any manner indicate any assurance or opinion of any manner whatsoever. Any information may be prone to shortcomings, defects or inaccuracies due to technical reasons. Certain information on Website may be on the basis of our own appraisal of the applicable facts, law and regulations in force at the date hereof.

The information (and opinions, if any) contained on the Website may have been obtained from public sources believed to be reliable and numerous factors may affect the information provided, which may or may not have been taken into account. The information provided may therefore vary (significantly) from information obtained from other sources or other market participants. Any reference to past performance in the information should not be taken as an indication of future performance. The information is dependent on various assumptions, individual preferences and other factors and thus, results or analyses cannot be construed to be entirely accurate and may not be suitable for all categories of users. Hence, they should not be solely relied on when making investment decisions. Your investment or financial decision shall always be at your own discretion and based on your independent research; and nothing contained on the Website or in any information would construe ABCL/ABC Companies or any of its employees/authorized representative as having been in any way involved in your decision making process. Any information and commentaries provided on the Website are not meant to be an endorsement or offering of any stock or investment advice.

Nothing contained herein is to be construed as a recommendation to use any product, process, equipment or formulation, in conflict with any patent, or otherwise and Facilities Provider / ABCL/ABC Companies makes no representation or warranty, express or implied that, the use thereof will not infringe any patent, or otherwise. Information on this Website sourced from experts or third party service providers, which may also include reference to any ABCL Affiliate. However, any such information shall not be construed to represent that they belong or represent or are endorsed by the views of the Facilities Provider or ABC Companies. Any information provided or sourced from ABCL Affiliate belongs to them. ABCL is an independent entity and such information from any ABCL Affiliate are not in any manner intended or to be construed as being endorsed by ABCL or Facilities Provider. The information does not constitute investment or financial advice or advice to buy or sell, or to endorse or solicitation to buy or sell any securities or other financial instrument for any reason whatsoever. Nothing on the Website or information is intended to constitute legal, tax or investment advice, or an opinion regarding the appropriateness of any investment or a solicitation of any type. Investment in the securities market and any financial instruments are inherently risky and you shall always assume complete and full responsibility for the outcomes of all the financial or investment decisions that you make, including but not limited to loss of capital. You are therefore advised to obtain your own applicable legal, accounting, tax or other professional advice or facilities before taking or considering an investment or financial decision.

No Solicitation

No Information at this Website shall constitute an invitation to invest in ABCL or any ABC Companies. These are meant for general information only or to meet statutory requirements or disclosures. ABCL or any of its employees are in no way liable for the use of the information by you, when making any decision or investing or trading through any investment vehicles or ABC Companies, or any other third party which may be engaged in offering of these services.

The information contained on this Website does not represent and should not be used to construe (i) the terms on which a new transaction would be entered into by ABCL or ABC Companies, (ii) the terms on which any existing transactions could be unwound by ABCL or ABC Companies, (iii) the calculation or estimate of an  amount that would be payable following an early termination of any past/existing transactions or (iv) the valuations given to any transactions by ABCL or ABC Companies in their books of account for financial reporting, credit or risk management purposes.

Statutory Disclosure

ABCL and ABC Companies are engaged in a broad spectrum of activities in the financial services sectors. You understand and acknowledge that Aditya Birla Money Limited (‘ABML’), Aditya Birla Finance Limited (‘ABFL’) and Aditya Birla Sun Life Asset Management Company Limited and trustees and sponsor of Aditya Birla Sun Life Mutual Fund (‘ABSLMF’) are group companies and ABML / ABFL also acts as a distributor of ABSLMF.  Any recommendation or reference of schemes of ABSLMF if any made or referred on the Website, the same is based on the standard evaluation and selection process, which would apply uniformly for all mutual fund schemes. You are free to choose the execution facilities in the manner deemed fit and proper and no commission will be paid by ABSLMF to ABML / ABFL if you choose to execute a transaction with ABSLMF on the Website, unless otherwise agreed by you and ABML/ABFL separately. Information about ABML/ABFL, its businesses and the details of commission structure receivable from asset management companies to ABML/ABFL, are also available on their respective Website.

Similarly Aditya Birla Money Insurance Advisory Services Limited and Aditya Birla Insurance Brokers Limited are insurance intermediaries and engaged in the distribution of Insurance Products and it may services may include products of Aditya Birla Sun Life Insurance Company Limited and Aditya Birla Health Insurance Company Limited. However there is no conflict on these services and commissions if any payable are in accordance of the extant regulations.

Force Majeure

The Facilities Provider, ABC Companies and any of its Third Party Service Providers shall not be liable for any delay or failure in performance resulting directly or indirectly from acts of nature, forces, or causes beyond their reasonable control, including, without limitation, Internet failures, computer equipment failures, telecommunication equipment failures, other equipment failures, electrical power failures, strikes, virus, other malicious computer code, hacking, labour disputes, riots, insurrections, civil disturbances, shortages of labour or materials, fires, flood, storms, explosions, acts of God, war, earthquake, governmental actions, orders of domestic or foreign courts or tribunals, non-performance of third parties, or loss of or fluctuations in heat, light, or air conditioning.

Indemnification

You agree to protect and fully compensate Facilities Provider, ABCL, ABC Companies, subsidiaries, licensors, suppliers and facilities providers, employees, officers and directors, from any and all third party claims, liability, damages, expenses and costs (including but not limited to reasonable attorneys fees) caused by or arising from your use of the facilities, your violation of the Terms of Use or your infringement, or infringement by any other user of your account, of any intellectual property or other right of anyone.

No Waiver

The Facilities Provider, ABC Companies or any of its third party service providers and processor bank/merchants etc. shall not be deemed to have waived any of its/their rights or remedies hereunder, unless such waiver is in writing. No delay or omission on the part of Facilities Providers and ABC Companies, in exercising any rights or remedies shall operate as a waiver of such rights or remedies or any other rights or remedies. A waiver on any one occasion shall not be construed as a bar or waiver of any rights or remedies on future occasions.

Exclusive Agreement

You agree that these Terms of Use are the complete and exclusive statement of agreement supersede any proposal or prior agreement, oral or written, and any other communications between you and the Facilities Provider and its Third Party Service Providers or processor bank/merchants relating to the subject matter of these Terms of Use. These Terms of Use, as the same may be amended from time to time, will prevail over any subsequent oral communications between you and the Website and/or the processor bank.

Termination

Either party can terminate this Agreement by notifying the other party in writing. Upon such termination You will not be able to use the facilities of this Website.

Governing Law and Jurisdiction

The Website specifically prohibits you from usage of any of its facilities in any countries or jurisdictions that do not corroborate to all stipulations of these Terms of Use. The Website is specifically for users in the territory of India. In case of any dispute, either judicial or quasi-judicial, the same will be subject to the laws of India, with the courts in Mumbai having exclusive jurisdiction.

These Terms and Conditions are governed by and to be interpreted in accordance with laws of India, without regard to the choice or conflicts of law provisions of any jurisdiction. You agree, in the event of any dispute arising in relation to these Terms and Conditions or any dispute arising in relation to the Website whether in contract or tort or otherwise, to submit to the jurisdiction of the courts located at Mumbai, India for the resolution of all such disputes.

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