09 April 2019
Dear sir, My grand mother is going to sell her rural agricultural land by which she will gain 40 lakh. Now my grand mother will gift me 40 lakh by cheque via banking system. I do earn 25 lakh per annum. And If I will get this 40 lakh gift from my grand mother. I am deeply worried about any sort of tax liability of gift on me. I want to be perfectly sure about the event of any tax before selling agricultural land so as there would be no fear after receiving the gift. Please sir specify the clause of Tax Laws 1- What is tax liability on me ? 2- what is tax liability on my grand mother ? Thanks in advance
10 April 2019
There is no capital gains tax liability as rural agriculture land is not treated as a Capital Asset U/s 2(14). Further there is no tax on your receipt U/s 56(2)(vii) as the same emanates from the relative who is a lineal ascendant .
CAclubindia
