Compensation receipt

Hemant (Querist) 28 January 2013 This query is : Resolved
Hello, I need to give 17 lacs to my brother since there has been a property division when my father purchased a house in Jan 2012.
I have paid 12 lacs and 5 lacs still to pay as a compensation since his house is small. I am asking my brother to give the receipt of the entire payment once I pay him all but he is denying that It will be then taxable.
I have paid 65 % of payments through cheque and rest cash.
Query>> Is it really taxable ?
If yes, what other alternative I can opt for?
Will a written statement accepting compensation on a plain piece of paper is the safe option ?
Please suggest.

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Devajyoti Barman (Expert) 28 January 2013
It is indeed taxable but the point is his refusal to give receipt would not save him from taxes in any manner since you have made payment though cheque only.

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