TMI Blog2012 (4) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... ancy rights, the tenancy rights are in respect of real estate and would be gains derived from alienation of immovable property. As the immovable property is situated in India, the gains are taxable in India under Article 13.1 of the DTAA Regarding capital gain - since the value of the shares is derived principally from immovable property situated in India, the same are taxable under Article 13.4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e said shares to enable her to file returns of income in India as well as in the Netherlands in respect of these transactions. 2. The following questions were admitted for a ruling from this authority:- 1. Is the amount received for the release and relinquishment of tenancy rights a real estate transaction liable to be taxed under the head capital gain and further, is it to be taxed in India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... encies Pvt. Ltd. held rights in the building Purnima or in some other property; the valuation of shares at the rate of Rs.40,000 per share and details about TDS paid of Rs.1,27,01,960 in FY 2010-11. It had raised an objection that the questions raised involve determination of fair market value of the property. 4. Neither the applicant nor the revenue appeared during hearing under section 245R( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oved stock exchange, since the value of the shares is derived principally from immovable property situated in India, the same are taxable under Article 13.4 of the DTAA in India. The questions are hence answered as under: Ans. 1 The amount received for the release and relinquishment of tenancy rights is liable to be taxed under Article 13.1 of the DTAA in India. Ans. 2 The capital gains on sale of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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