My client has received Rs 2.5 crore from surrender of tenancy right having status is trust operating khadi business. it is not registered u/s 12AA of income tax act. so please tell me whether the above amount received is taxable or not if not then exemption under which section is claimed. trust also have more than 3 coroe accumulated revenue losses from last years. So please provide me the tax teatment in above case.
23 April 2015
1. Please refer Section 55(2)(a) which provides for the Cost of Acquisition of tenancy rights. 2. In case nothing has been paid for acquiring the tenancy right, Rs. 2.5 crore will be capital gain and as such taxable. 3. Exemption U/s 54EC may be taken by investing in Capital Gain Bonds. 4. C/fd Business Losses can not be set off. Pl Refer Section 72. .
Please tell me whether this amount will be claimed as exempt u/s 11 by by registering the trust u/s 12AA OR any other manner of tax saving in this case.
CAclubindia
