One of my Client received Rs. 800000/- as Compensation to Waive the right on Agriculture Land which is owned by a Trust. GARDAURI was in the name of my client. However, the registered owner of the land is the Trust.
Now the Trust is paying Rs. 800000/- to my client to waive the Tenancy Rights over that Agriculture Land. And the Trust is paying that amount BY CHEQUE to my client.
Further, the Trust is also selling the that Agriculture Land to any other person.
So the questions are:
1. What wud be the Tax Treatment in the hands of the Trust and My Client (i.e an Individual)
2. Is there any way out to save the Tax on this amount of Rs. 800000/-. Please note that the amount is being paid by the Trust is Through CHEQUE...
CAclubindia
