TAXABILITY OF COMPENSATION RECEIVED ON SALE OF FATHER'S PROPERTY, Income Tax

[MVK TAXAUDIT]

Mr. A had sold a property to Mr. X. Later daughter of Mr. A files a case on Mr. X that even she was entitled for a share in father's property. Then Mr. X pays certain amount to daughter of Mr.A to take back the case ( off the court settlement ). ( Note : daughter is not party in the sale deed )

what will be the tax treatment for the amount received by daughter of Mr. A. Whether it is taxable under the capital gain or income from other sources ?

Posts / Replies

[DR.MARIAPPAN GOVINDARAJAN]

In my opinion it is income from other sources.