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Is Ancestral property share taxable for a daughter in India? |
My late father had all 5 daughters & no sons. All five of us are married & our mother is alive. Now our mother wants to sell off our ancestral agricultural land & wishes to give equal share to all the daughters. Now I want to know whether this amount which I receive will be taxable as per our Indian constitutional law.Can any CHARTERED ACCONTANT or A TAX CONSULTANT please help me.................Thank u The first answer given by g4tax and the 2nd answer given by vmp both put together gives full answer to your questinon. See the money you will receive from your mother is totally exempt because it will be GIFT from your mother. I advise you to receive the money by Cheque and get a Gift deed signed by your mother. This will be full proof that the money received by you is a GIFT. The sell price received by your mother is also exempt because the land you are selling is agricultural land. this transaction is to be divided into two parts., first sale of agricultural land by your mother and the sharing of proceeds with you. Agricultural land is not a capital asset (provided it is out side the specified distance from the limits of the town or panjayat etc) and hence there is no capital gains tax and she sharing the sale consideration received with you will be a kind of gift to you and this is also not taxable. but be careful to check the location of the agricultural land, or else she might end up paying income tax on the sale of agr.land |
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