My friend has receievd a notice to file ITR for year 2014. In this year he had recieved 25 lakhs as owelty. I see several cases fought where Supreme court has declared owelty as no taxable.
Now which section in e filing this 25 lakhs needs to be mentioned please advice.
Its not tax-exempt; chargeble as capital gains.
But if you see blog "https://taxbymanish.blogspot.in/2013/02/whether-sum-paid-as-owelty-during_8.H T M L" It clearly says "Whether a sum paid as owelty during course of partition to settle inequalities is deemed to be immovable property, and will not attract capital gains - YES: HC" P
Please advice
Its case specific. When there is no transfer of property as per transfer of property act, it cannot be liable to capital gain tax.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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