• Tax Implications in Oral family settlement (recorded through memorandum)

Hi,

My father expired recently without leaving any will. My mother, my married brother and myself (married daughter) are his only legal heirs. We have done an Oral family settlement (recorded through memorandum) in order to resolve conflict between us. 

There are 4 main components in the above oral family settlement:

1) My mother has borrowed money from me across past several years for her sole proprietorship business, she has also been paying annual interest on outstanding principal amount every year. As part of settlement she has returned Rs 23 lacs of the outstanding principal amount.

2) I have given my late father a loan of Rs. 7.38 lacs many years back. No interest has been paid to me on this loan amount. As part of above settlement I have received back the entire Rs. 7.38 lacs without any interest payment.

3) My mother received Rs. 31 lacs from the PPF account of my late father as nominee. As part of settlement she and my brother has given me Rs. 14.62 lacs as my share from above PPF amount.

4) As per above settlement, I have also relinquished my share in the ICICI Bank Savings account of my late father in favour of my mother and brother.

So in total I have received Rs 45 lacs as per above settlement. As per my understanding this entire amount is exempted from income tax /capital gain tax. I am confused as to how much of above amount should I show in the EXEMPTED INCOME section of ITR.

a) Should I show the principal amount of Rs. 23 lacs received from my mother as part of settlement in exempted income?

b) Should I show the principal amount of Rs. 7.38 lacs received from my late father as part of settlement in exempted income?

If yes, is it fine that I show only Rs. 14.62 lacs of the total Rs. 45 lacs received as per above family settment as exempted income in ITR?