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Income Tax



My father sold his agriculture Land to Govt Corporation for Highway Road Development in Jan 2018. He received 20 L amount through direct transfer in Savings Account from Govt Road Authority.

Now my father want to distribute equal Amount of Rs 10 L between we 2 brothers

What will be Tax effects for us
 
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if 10 L given by father as a GIFT to his sons then it will exempt from tax u/s.56(2)

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Thanks Jyoti

What is max limit for Exmpted Gift Amount
 
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There is no limit for gift from relatives [as father falls under the definition of relative under sec56(2)] . your father can even give you rupees 1 crore as gift but better prepare a gift deed before enetring into transaction of ssuch huge amount.


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ya... totally agree with Ashwin kumar

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but if it's Urban agricultural land, then your father have to pay capital gain tax on it

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Thanks Ashwin,

It was Surely Agriculture Land in Rural Area
 
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Coaching and Practice in Tax Audit Law.

Compulsory acquisition of any property is exempt u/s 10(37) rama krishnan

And rajesh the above amount can be taken as gift or in nature of loan from your father just make sure to make a gift deed.


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attn: ruchika ji... only Urban agricultural land acquired by way of compulsory acquisition is exempt under 10(37) subject to certain conditions..
 
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Coaching and Practice in Tax Audit Law.

but as per circular dated 25.10.2016 any land or building.

Kindly refer

 
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