Sales of inherited property

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PARDEEP KAPIL (Querist)
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01 December 2021 Dear sirs : My client is an NRI. He inherited property from his grand father... Now government has acquired this property and paid Rs.Fifty lakhs... Is this property taxable.... Secondly can he give this amount as gift to his family members... Will there be any income tax on any one .. Regards

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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01 December 2021 Under which act it was acquired?
CBDT issued circular dated 25.10.16 vide circular no.36/2016 ..... where in CBDT has clarified that the Compensations received in respect of award or agreement which has been exempted from levy of Income Tax vide section 96 of the RFCTLARR Act shall also not be taxable under the provision of income tax, 1961 even if there is no provision of exemption for such compensation under the Income Tax Act, 1961.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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01 December 2021 For second part, he can give any such amount as gift to his family members without any tax liability, once the assessment over acquisition is over.

PARDEEP KAPIL

PARDEEP KAPIL (Querist)
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03 December 2021 Sir - The owner is an NRI individual... Will the government deduct TDS on this compulsory acquiring of land.. ... Will it be possible for NRI to claim refund of TDS.... Regards

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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03 December 2021 Depends upon which act the government has acquires the land. Even if TDS been deducted, he can file return and claim it against tax liability, if any & excess can be claimed as refund.

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