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AI Drafter

Generate professional replies to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.

Step 1 – Issue Identification & Review

The AI analyses your query, notice, order, or uploaded documents and identifies the key issues involved.

• Review the issues identified by the AI
• Add, edit, remove, or refine issues as required


Step 2 – Draft Generation

Once you approve the issues, the AI performs issue-wise legal research and prepares a structured draft response.

• Relevant statutory provisions
• Judicial precedents and Supreme Court, High Court and other citations
• Issue-wise legal analysis
• Practical arguments and supporting content
• Professionally structured draft ready for further review.

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Issue ID :

TAXABILITY OF COMPENSATION RECEIVED ON SALE OF FATHER'S PROPERTY

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 ?

Income from other sources: settlement received for relinquishing an alleged property claim treated as taxable income. A payment to a non party daughter to withdraw her claim to a share in her father's property, made as an off court settlement after a sale to a purchaser, is treated as income from other sources rather than capital gains. (AI Summary)
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DR.MARIAPPAN GOVINDARAJAN on Jul 6, 2020

In my opinion it is income from other sources.

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