Tax liability on land acquisition amount
I have received Rs.24 lakh as compensation amount for my agricultural land from State Government.An expressway is to be made by NHAI.We are three brothers.They authorised me collect the amount as they are at present not residing in Bihar.The cheque is in my name however I have to transfer their amount i.e. Rs. eight lakh each.I have received the cheque in Dec.2015.
I wish to know whether this amount will be taxable or not?
Asked 2 years ago in Income Tax from Patna, Bihar
Your tax liability shall be limited to your share of income only and it will not have any taxability. Only thing to confirm is that this property is in name of your brother only. The taxliability of your shall be based on your others details.
You will be taxable on your portion only.
You will be taxed only on the income received by you and not on the income received on behalf of your brothers. However, pl. ensure that the title over the property is clear.