28 April 2018
according to me, Section 56 would be applicable. as it is a gift received from cousin and it is not exempt as cousin doesn't come under the definition of relative. Solution to this is Tell your cousin to file his return giving agricultural income details. income tax is nil on agricultural income. if your income is below 250000 including 200000 received, then whole 200000 is not taxable.
28 April 2018
Sir, i would like to clarify here that, there is personal understanding between "the person" and "cousin", that it was the person who was the beneficial owner of the land, his cousin was just the registered owner, i.e., the person merely registered the land in cousin's name but paid the consideration from his pocket. Because of this understanding, upon sale of that land, the person upon receiving the sale proceeds from cousin deposited the same cash into his bank account.
CAclubindia
