13 September 2010
Person X has a inherited property. a person Y sells without X consent. X moves to court. buyer Z offers out of court settlement. X accepts.
is that settlement/compensation taxable? can it called capital rcpts and exempt from tax? or is it liable to CG?
13 September 2010
It shall be considered as sale transfer of property and hence Capital Gain will be applicable.
This shall be considered settlement and not as compesation because compensation is received under any law but this amount is not received under any law. But its a normal deal outside the court.
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