Money gift from grand mother

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This query is : Resolved

Shivendra Singh (Querist)

09 April 2019 Dear sir, My grand mother is going to sell her rural agricultural land by which she will gain 40 lakh.
Now my grand mother will gift me 40 lakh by cheque via banking system. I do earn 25 lakh per annum. And If I will get this 40 lakh gift from my grand mother.
I am deeply worried about any sort of tax liability of gift on me. I want to be perfectly sure about the event of any tax before selling agricultural land so as there would be no fear after receiving the gift.
Please sir specify the clause of Tax Laws
1- What is tax liability on me ?
2- what is tax liability on my grand mother ?
Thanks in advance

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

10 April 2019 There is no capital gains tax liability as rural agriculture land is not treated as a Capital Asset U/s 2(14).
Further there is no tax on your receipt U/s 56(2)(vii) as the same emanates from the relative who is a lineal ascendant .

Shivendra Singh

Shivendra Singh (Querist)

10 April 2019 Sir, how to decide the Agricultural land is RURAL or not ?

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