My father passed away over 2 years back. We are four siblings whose names have been updated in 7/12 of the agricultural land that he had purchased in our village. We would like to sell the land now.
We have mutually agreed to receive unequal share in the proceeds from the agriculture land sale. The share will be 60%, 15%, 15% and 5%. In the sale agreement, we will be mentioning these percentages for distribution of the money.
I have following questions.
1. Is taking unequal share allowed by law and income tax?
2. Is there any tax impact to the sibling getting a higher than equal share?
2. Is there any minimum share that is required to be taken?
3. Since this is agriculture land, I am assuming there is no tax on the sale proceeds?
Looking forward to your guidance.
CAclubindia
