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Chargiability of amount received for vacating the premises, Income Tax |
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Chargiability of amount received for vacating the premises |
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Amount received from shop owner by the shop tenant for vacating the premises is chargeable to income tax?If yes, how?Please clarify.
Posts / Replies Showing Replies 1 to 2 of 2 Records Page: 1
Dear Sujit Ji This transaction amounts to 'Transfer' under section 2(47)(ii) of the Income Tax Act as there is a 'EXTINGUISHMENT OF ANY RIGHT THEREIN'. The amount may well be subjected to Capital Gain Tax.
Many many thanks for the reply.One more thing which I need to clarify as there is no amount involed which can be classified as Cost of Acquisition,can the rent pad to landlord be treated as Cost of acquisition/improvemnet or the entire amount will be taxable as Capital gain?
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