Settlement Deed with consideration
Ranga
(Querist) 23 November 2009
This query is : Resolved
Hi, My mother owns a property in Chennai which she acquired through her savings. She now wants to execute a settlement deed with her son (my brother) on that property.
As per the same, my brother would own part of the property and the balance would remain with my mother. My brother would pay about Rs.20 lacs which would be given to me by my mother. My name is not figuring anywhere in the settlement deed.
My queries are:
a. Whether any capital gain would araise for my mother?
b. Can she accept the payment of Rs.20 lacs officially from my brother?
c. Will there be any tax liability when she gives that money to me?
Kindly clarify the above. Thanks,
A V Vishal
(Expert) 23 November 2009
a. Whether any capital gain would araise for my mother?
Ans. No
b. Can she accept the payment of Rs.20 lacs officially from my brother?
Ans. Yes
c. Will there be any tax liability when she gives that money to me?
Ans. No
Raj Kumar Makkad
(Expert) 23 November 2009
I fully agree with the opinion of Vishal and no other question has been raised by you except answered perfectly.
