Income tax on inherited property
This query is : Resolved
T.K. Thukral
(Querist)
24 January 2020
My D-I-L (a Non Resident,Non Indian citizen) an Income Tax Assessee in India has one brother (a Non-Resident,Indian Citizen)
Income Tax Assessee in India have reached an unwritten understanding on the left-over estate of their parents.According to which the
brother will pay an agreed amount to my D-I-L for relinquishing her rights in the parental property.
My question is what will be the treatment of the amount, so received by her - spread over two to three financial years,
under income tax act if she accepts the money as gift from her brother (for natural love and affection) or as compensation for
relinquishing her right to parental property. What is more appropriate for Income Tax planning.
The amount involved is more than 20 Lakhs in any year.
Income Tax Assessee in India have reached an unwritten understanding on the left-over estate of their parents.According to which the
brother will pay an agreed amount to my D-I-L for relinquishing her rights in the parental property.
My question is what will be the treatment of the amount, so received by her - spread over two to three financial years,
under income tax act if she accepts the money as gift from her brother (for natural love and affection) or as compensation for
relinquishing her right to parental property. What is more appropriate for Income Tax planning.
The amount involved is more than 20 Lakhs in any year.
CA R SEETHARAMAN
(Expert)
24 January 2020
Treat it as gift from brother for tax planning.
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