Long term capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 March 2012 What are the tax liabilities on an individual if he gets an amount out of the court settlement/compromise for vacating his share in a property.

I would further continue if I get the answer accordingly.

Thanks

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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17 March 2012 The amount as receivable will be treated as Sales Consideration. The cost incurred for attaining the share in the property by himself or, in case received in inheritance etc., by the previous owner corresponding to his share, will be treated as cost of acquisition. Cost of acquisition can be indexed in case the property is held for long term.

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Querist : Anonymous

Querist : Anonymous (Querist)

17 March 2012 What are the tax liabilities on an individual if he gets an amount out of the court settlement/compromise for vacating his share in a property.

The problem here is that the said property is already registered in the name of my uncle and as per the compromise I am only getting the said amount from my uncle not from the buyer for vacating my portion of property. So I am not the one to sell it as the entire property stands in his name. So how it can be sale consideration ?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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17 March 2012 Here ,what is the underlying issue leading to the comprise is not known and ,therefore,for want of that, the query can't be observed in the proper perspective.

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