Taxation of receipts from share of property
This query is : Resolved
17 January 2022
Mr.X's mother passed away in June 2020. His mother had her share in her father's property which is received by Mr.X by cheque after her death. What would be the tax treatment, when and how it will become taxable in the hands of Mr.X?
17 January 2022
Yes. LTCG would be taxable..
More details about of property needed for clarity.
More details about of property needed for clarity.
17 January 2022
When? What component? and How? Also I missed to tell that it was a share from agricultural land.
17 January 2022
Whether the assessee was party to the sale?
Whether the agricultural land was rural or urban?
Whether the agricultural land was rural or urban?
17 January 2022
No, No. There is no sale. The share is received in cash directly from maternal uncle (by cheque and executing proper agreement between Mr.X and his maternal uncle) and not by adding Mr.X's name in 7/12. What is to be noted is that mother's name was not in 7/12 but she had her legal right. The land is rural agricultural land. As the share is received by Mr.X in cash (i.e. by cheque) my questions are
1.Whether this receipt will be exempted from tax?
2.If no, then when will his tax liability on that share arise?
1.Whether this receipt will be exempted from tax?
2.If no, then when will his tax liability on that share arise?
17 January 2022
Here if the agreement is executed for any relinquish of rights in the property, it will be taxable.
But if its been treated as gift, then it will be tax free under sec. 56(2) of IT act.
But if its been treated as gift, then it will be tax free under sec. 56(2) of IT act.
17 January 2022
Thank you very much sir.
17 January 2022
My Pleasure ...
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