Respected sir (s). The legal heirs of a muslim family are going to receive the Compensation amount of Land acquisition case by the Government of Telangana state soon.Three of their brothers are the citizens of USA and having OCI membership card. (Overseas citizen of India). They have ancistral property here but it does not fetch any income to them.
My question is:
After awarding the Compensation Amount of around ₹ 3.20 crores to the family members, are all the members are eligible for payment of Income Tax?
If they are eligible, how much % amount they have to pay as Tax?
Does the OCI members are also eligible for payment of Tax?
If they are not eligible for payment of Tax, Under which rule OCI members will get exemption?
Can that amount be exempted from payment of Tax of all as it is meant to rehabilitate the family members?
Kindly help by giving your valuable reply to make right decision from them.
warm regards
Hamdani.
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ARE THEY ELIGIBLE FOR TAX
Replies (2)
" After awarding the Compensation Amount of around ₹ 3.20 crores to the family members, are all the members are eligible for payment of Income Tax?"
If the land is aquired by Government under RAFTLAAR act, compensation received for compulsory acquisition of land (except those made under section 46 of RFCTLARR Act), is exempted from the levy of income-tax.
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Thanks a lot sir
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