Dear friends plz suggest your valuable feedback.
The assessee(My mother) had entered into an agreement to purchase a Agricultural land comes in gram pancyat, but situated with in the 8km limit of municipality/corporation areas. we my mother paid Rs. 1,60,000 as an advance to the ( owner is my mothers sister, blood relation)owner, on may 1997. Both parties had reserved the right to specific performance of the agreement. After fourteen years,now oct 2011, another agreement was entered into between the parties by which the assessee agreed for termination of the earlier agreement and allowed the owner to sell the said property to any person and at any price of his choice and in consideration of the same the assessee will be received a sum of Rs. 40 lakhs along with the amount advanced to the owner. This deal is being done through the high court.
My question is, that 40 lakhs amount will be comes under income tax limits?
.. do i need to pay the income tax for the amount against the relinquishment of right& assest.?
If cash received in the form of gift will it also entertain income tax?
Please suggest a way to avoid tax to get the money in white( through legal process)..
looking a positive and accurate suggestions from my lawyers friends
Thanks and regards
jack
CAclubindia
