Taxability on Property income, Income Tax

[HARSHA JOSHI]

A person has received Rs. 16 lacs from the developer of the property in which he stayed for more than 65 years.(ancestoral property)towards surrendering his Tenancy Rights in the said House. There was a meagre amount might have been paid under a 'old Paguri system'by the late grandfather of the assessee. figure is not known to the assessee but he has spent appx. 5 lacs in all these years twds. major repair. kindly advise on the taxability of the receipt of Rs. 16 lacs being amount recd. on surrender of tenancy rights of the residential house. if taxable under the head cap. gain, indexation benefit on which amount is permissible? if as a income from other sources, deduction of amt spent is permissible?

Posts / Replies

[Dinesh Gupta]

Before that, you may visit the supreme court decision reported in 2008 -TMI - 6153 - SUPREME Court in which it was held that surrender of tenancy right is not subject to tax.