share in property

Tax queries 155 views 4 replies

Kahera

unemployed

41 Points Joined March 2017

if a person receive his share from parents property (I.e cash) so how to show it in ITR .is it taxable or exempted.

Replies (4)

Abhimanyu

316 Points Joined August 2009

Thanks for the query Kahera,

Property received in such a form may not be taxed since, income tax is tax on income not transfer of property.

The question that would arise is "Why the property was transfered?"

In case it is property was transfered just because of him being the legal heir, there will not be any question of tax.

However, keep in mind that if in case any income tax was payable and not paid on the earning which led to the generation of the property transfered, might be required to be paid by the legal heir, according to the act.

In case of any query, please revert.

Thanks,

Abhimanyu

Kahera

unemployed

41 Points Joined March 2017

the person is legal heir and his share of cash is transferred to his account ,so in which head of income he needs to show it, in which ITR and whether he needs to maintain any documents for the same

Abhimanyu

316 Points Joined August 2009

Thanks for replying,

No need to mention it in taxing column, however depending on the ITR you are filing it may be required to mention the receipt of the same for Balance sheet purposes only.

It is not income of legal heir, it is just property no income tax on this.

Thanks, if any issue please do write back,

Abhimanyu