LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

regarding gift

Shubham Goyal (22 Points)

20 August 2017

Can i gift 80 lacs to my sister which i received from government by compensation on compulsory acquisition of land.?

Reply
Follow
Share

13 Replies

rama krishnan (12234 Points)
Replied 20 August 2017

yeah you can give. it's not chargeable to tax either in your hands or in your sister's hand. however you have to pay stcg or ltcg after computing cg

1 Like

Shubham Goyal (22 Points)
Replied 20 August 2017

but compensation received on compulsory acquisition is tax free under section 96 of Right to Fair Compensation and Transparency in Land Acquisition,Rehabilitation and Resettlement Act, 2013.... whether i need to pay any capital gain tax on this exempt income..?

rama krishnan (12234 Points)
Replied 20 August 2017

I don't think so . as per income tax act it's taxable unless otherwise you satisfy certain conditions as per sec 54D

Shubham Goyal (22 Points)
Replied 20 August 2017

Sir please read the CBDT circular no. 36/2016 dated 25 October 2016. and please make me clarify whether it is taxable or not..? its very urgent..

rama krishnan (12234 Points)
Replied 20 August 2017

thanks for making aware of the circular. if you have sold land property then sale proceeds on compulsory

rama krishnan (12234 Points)
Replied 20 August 2017

acquisition is tax free except the sales which fall under section 46 RAFTLARR of 2013

Shubham Goyal (22 Points)
Replied 20 August 2017

yess sir... so that means the compensation which i received i totally tax free and i can gift tha whole amount to my sister as a gift..? no income tax issues..?