Dear Sirs, I am muslim and soon will be receiving from mother’s brother (mamu) Rs. 12 lakh (2/3rd ) inherited from my mother’s (already died ) share in her father’s property sale proceeds. Is this amount taxable per new IT rules ? If yes, how will this amount be taxed. Please advise how to receive this money– whether cash/check/bank transfer and how can it be non-taxable. Thanks.
Hi,
Any money received from your mother's real brother is tax free in your hands.
Capital gain shall be taxable on sale of your father property in the hands of legal owner of the property.
Please feel free to call/ revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
Further, you should take the money via cheque or direct bank transfer.
Don't take the money in cash
Many thanks. Actually, the check will be issued by the builder who has bought this property on behalf of my mother's brother. Will that be OK ? or this check MUST come out from my mother's brother's bank account ? Please advise.
Hello,
As explained by you, it appears that the property was in your uncle's name. In such a case it will be preferred that the entire amount comes to him from the builder and then he in turn issues a separate cheque to all of you.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Hello,
Try avoiding taking a cheque from the builder and keep the transaction simple by asking the builder issue the entire cheque in your uncle's name and then your uncle will transfer your share to you as Gift.
Regards
CA Keerthiga Padmanabhan
M.Com., CA, LLB
.