I ‘m an NRI.I will be receiving the money from my parents. My parents will be receiving the Land compensation from High court on behalf of Govt of Tamilnadu.The land category is rural area. Can I get the money from my parents as a gift or Inheritance benefits. Is there any tax applicable to my father or myself. if I will receiving the Land compensation money from my parents.
In your case, there would be no tax liability on your father with regards to gift given to you.
According to Income Tax Act of India, if both doner & donee of gift are relatives then it is exempt in the hands of both of them.
But in your case, Since you are NRI, for checking your tax liability, you must refer to the law of the country in which you are residing with regards to provisions of Gift amount received by you.
For any other queries, feel free to contact at:
In the present case you can receive gift from your parents on which there will not be any tax. But need to check the conditions to be called land as rural land. Pl check that to ascertain tax liability of your father.
Shyam, The land is rural (Agriculture) and and forced acquisition for district master plan complex development.
This question is addressed to CA Shyam.
Need to check after getting ur complete details, please send on our mail ID modani005@gmail.com
Sure Shyam.Will send you the details very shortly
You can receive gift from your parents which is under exempted category of relatives u/s 56 of Income tax act..
Your parents to keep evidence for land being agricultural land and being exempt under Income tax act.
This question is addressed to CA Shyam.