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Compensation recd.

This query is : Resolved 

27 March 2009 An assessee was using a property on rent from a builder of Rs. 100 p.m. The builder paid Rs. 750000/- to assessee as compensation to vacate the property..
Will it be taxable and under which head...

27 March 2009 As the money received is a settlement, there will be no tax applicable on it.

27 March 2009 IF the assessee previously has right to occupancy then for transfer of such right he is taxable , and the COA will be amount paid for obtaining such right


27 March 2009 i support mr. manmohan

28 March 2009 I believe that in this case there is no involvement of right to occupancy. therefore the compensation recd is taxable as " Other Income"

28 March 2009 If there is no involvement of right of occupanct, then no transfer and it is a capital receipt & NOT taxable



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