COMPENSATION RECEIVED ON SALE OF FATHER'S PROPERTY,
This query is : Resolved
26 February 2020
Mr. A had sold a property to Mr. X. Later daughter of Mr. A files a case on Mr. X that even she was entitled for a share in father's property. Then Mr. X pays certain amount to daughter of Mr.A to take back the case ( off the court settlement ). ( Note : daughter is not party in the sale deed )
what will be the tax treatment for the amount received by daughter of Mr. A. Whether it is taxable under the capital gain or income from other sources ?
what will be the tax treatment for the amount received by daughter of Mr. A. Whether it is taxable under the capital gain or income from other sources ?
26 February 2020
In my opinion:
Suxh amout of compensation which reliquishes the right of a party to sue, as in the current case, it will be a capital receipt which will not be taxed under the income tax Act.
Suxh amout of compensation which reliquishes the right of a party to sue, as in the current case, it will be a capital receipt which will not be taxed under the income tax Act.
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