Myself and my late father's elder brother are having a pending civil suit for our residential property acquired by both of us for the last 35 years approx. Now we both are planning to settle the same out of the court by entering an M.O.U. in court. As my father during his lifetime sold the entire property to me vide registered doc.and I have filed the said civil suit against my uncle for fabricating some documents and getting the said entire property registered in his name only. My uncle through the said MOU will be paying me a settled amount and will acquire the whole property himself. Will there be any capital gain tax on the amount received through this settlement of this property. How can I invest this money without paying any taxes. Kindly let me know about the judgement on similar topics or else the income tax act applicable for my case so that I can read the same properly.
1 Answers
It may be treated similar to a property sale owned by you (through your father), so taxes should be payable on this amount received.
As this case is complex and we don't have enough knowledge on this subject, we advise you to take help from an experienced tax professional or CA.
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