My uncle has sold land. My mom name was included as a part of the family member.
she is tax payer and equal share of money received was credited to her bank account as a part of sale process.
my mom transferred all mony she got as a part of the transaction , to his brother as she does not want to keep this money.
my question here is , does she need to pay tax for money received but she does not handle in her account currently? How to avoid paying tax here ?
thanks in advance for help
It is not relevant whether your mom wants to keep money with her or give it to her brother. Since it is her income, she is required to pay tax. As already said by Shishir, she can claim certain exemptions from capital gain based on investment subject to conditions specified.
You have two options in this case either pay capital gains tax on the amount of gain accrued to your mother (whether it is short term or long term not clarified by you) or claim exemption from capital gains tax by investing the proceeds in a new house as per provisions of section 54 or invest in notified bonds of NHAI or REC u/s 54EC within 6 months of transfer. capital gains amount should be deposited in a bank account under capital gains scheme if not invested in the said assets before the due date of filing return.
Here practice followed is not good instead receiving share of income, she could transfer share to her brother(relative) for nil consideration or as gift and in such way tax liability is shifted to your uncle
But Here diverting share of income doesnt change assessee so tax will be calculated as per normal provs on share of income
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