My father sold his agriculture Land to Govt Corporation for Highway Road Development in Jan 2018. He received 20 L amount through direct transfer in Savings Account from Govt Road Authority.
Now my father want to distribute equal Amount of Rs 10 L between we 2 brothers
What will be Tax effects for us
10 Replies
Rajesh
(aa)
(27 Points)
Replied 14 September 2018
Thanks Jyoti
What is max limit for Exmpted Gift Amount
What is max limit for Exmpted Gift Amount
Ashwin Kumar
(1234 Points)
Replied 14 September 2018
There is no limit for gift from relatives [as father falls under the definition of relative under sec56(2)] . your father can even give you rupees 1 crore as gift but better prepare a gift deed before enetring into transaction of ssuch huge amount.
rama krishnan
(12244 Points)
Replied 14 September 2018
but if it's Urban agricultural land, then your father have to pay capital gain tax on it
Rajesh
(aa)
(27 Points)
Replied 14 September 2018
Thanks Ashwin,
It was Surely Agriculture Land in Rural Area
It was Surely Agriculture Land in Rural Area
Ruchika Somani
(Coaching and Practice in Tax Audit Law.)
(4429 Points)
Replied 14 September 2018
Compulsory acquisition of any property is exempt u/s 10(37) rama krishnan
And rajesh the above amount can be taken as gift or in nature of loan from your father just make sure to make a gift deed.
rama krishnan
(12244 Points)
Replied 14 September 2018
attn: ruchika ji... only Urban agricultural land acquired by way of compulsory acquisition is exempt under 10(37) subject to certain conditions..
Ruchika Somani
(Coaching and Practice in Tax Audit Law.)
(4429 Points)
Replied 14 September 2018
but as per circular dated 25.10.2016 any land or building.
Kindly refer
rama krishnan
(12244 Points)
Replied 14 September 2018
Ms. ruchika... cbdt circular speaks about exemption of agricultural land irrespective of rural and Urban agricultural land acquired under RFCTLARR ACT and only speaks about agricultural land and not about any other properties
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