28 April 2010
Say I am occupying a house on tenancy rights besis or more commonly known as pagadi system. I sell this house. What is the taxability scenario in this case?
28 April 2010
Tenancy right is a capital asset. Its transfer,therefore, attracts provisions of capital gains tax. Cost of acquisition has to be determined under section 55(2) (a) (i) or (ii) of the Income tax Act,1961.