FUNDS RECIEVED THROUGH NEFT -TAXABILITY.

WE HAVE RECIEVED FUNDS OF RS 6 LACS FROM OUR RELATIVES IN CONSIDERATION OF LEAVING OUR SHARE IN ANCESTRAL PROPERTY.

IN THAT CASE WHAT IS TAXABILITY OF AMOUNT RECIEVED, WHETHER WE HAVE TO PAY TAX. BASICALLY IT WAS AMOUNT GIVEN BY MY COUSIN WHO STAYS ABROAD TO HER PARENTS LIVING IN INDIA, WHO FURTHER DISTRIBUTED THE MONEY TO THREE FAMILY MEMBERS, ONE OF WHICH IS OUR SHARE. SO DO WE HAVE TO PAY TAX ON THE AMOUNT RECIEVED VIA NEFT. AND WE FILE RETURNS EVERY YEAR AS WE HAVE OTHER SOURCES OF INCOME.

Replies (2)
Quick Summary
This discussion addresses the taxability of funds received through NEFT in exchange for relinquishing a share in ancestral property. The funds originated from a cousin abroad, distributed via their parents to family members, including the poster. While the amount was received via NEFT, the consensus leans towards it being treated as a capital gain, as the extinguishment of rights in a capital asset is considered a transfer.

Yes. It seems like a capital gain. But your case will require more specific analysis.
Extinguishment of rights in the capital asset is a transfer of capital asset and  capital gains tax will apply dm me for anymore doubts

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register