Income tax on inherited property
This query is : Resolved
24 January 2020
My D-I-L (a Non Resident,Non Indian citizen) an Income Tax Assessee in India has one brother (a Non-Resident,Indian Citizen)
Income Tax Assessee in India have reached an unwritten understanding on the left-over estate of their parents.According to which the
brother will pay an agreed amount to my D-I-L for relinquishing her rights in the parental property.
My question is what will be the treatment of the amount, so received by her - spread over two to three financial years,
under income tax act if she accepts the money as gift from her brother (for natural love and affection) or as compensation for
relinquishing her right to parental property. What is more appropriate for Income Tax planning.
The amount involved is more than 20 Lakhs in any year.
Income Tax Assessee in India have reached an unwritten understanding on the left-over estate of their parents.According to which the
brother will pay an agreed amount to my D-I-L for relinquishing her rights in the parental property.
My question is what will be the treatment of the amount, so received by her - spread over two to three financial years,
under income tax act if she accepts the money as gift from her brother (for natural love and affection) or as compensation for
relinquishing her right to parental property. What is more appropriate for Income Tax planning.
The amount involved is more than 20 Lakhs in any year.
24 January 2020
Treat it as gift from brother for tax planning.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- Type of Capital Gain
- Booth for sales promotion
- F & O PROFIT REPORTING FOR AY 2026-27
- VALUATION OF PRIVATE LIMITED COMPANY SHARES
- Accounting with Claude
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
