Mrs. X (Mother) has received settlement amount (compensation) of Rs. 17,50,000, but the cheques are issued in the name of Mr. Y (Mrs. X's Son). Whether they are taxable in Mrs. X's hands or Mr. Y's hands.
Regards,
Devendra Kulkarni
Mrs. X (Mother) has received settlement amount (compensation) of Rs. 17,50,000, but the cheques are issued in the name of Mr. Y (Mrs. X's Son). Whether they are taxable in Mrs. X's hands or Mr. Y's hands.
Regards,
Devendra Kulkarni
Obviously taxable in the hands of the person who has earned the income....here Mr.Y has just received on the behalf of Mrs. X...and he is no more good than her agent...
What type of compensation it is? Some compensation can be of cpital nature and are exempt under income tax act. So please define the type of compensation you earned?
Assessee has an ancestral property, so she has received the amount to remove their ownership from the land ie. their name shall be removed from the documents and will no more be the legal owners of the land. Hence, the above amt. is recd. as compensation.
This is the case of relinquishment of rights.
It will be taxable in Mrs. X's hands, she being the owner.
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