Amount received fro vacating rented property
This query is : Open
25 March 2011
Dear all,
One of my friend is vacating a prime property which is on reant to some other person and getting Rs 35 lakhs as charges for vacting. Under which head this amount will be taxable
Please advice
One of my friend is vacating a prime property which is on reant to some other person and getting Rs 35 lakhs as charges for vacting. Under which head this amount will be taxable
Please advice
26 March 2011
As per my knowledge the said incomed is deemed to be a Capital Gain and in no case it can be treated as income under any other head of Income tax.
26 March 2011
It is covered under head house property not in capital gain bcz here person is not the owner of property
26 March 2011
But Sir,
We are also not the owner of the shop but having procession so how can we show it under income from house property. Or we have to assumed to be deemed to be let out
Plz clarifiy
We are also not the owner of the shop but having procession so how can we show it under income from house property. Or we have to assumed to be deemed to be let out
Plz clarifiy
26 March 2011
This has to be either Capital gains or Income from other sources. (It cannot be house property as receipt is on giving away the possession. after such event it is not covered under HP)
Since there is no element of ownership of shop as well as transfer of shop(since there is no right on the shop, there cannot be an element of exchange or extinguishment of right). Thus it cannot be capital gains.
In my opinion, it has to be other sources
Since there is no element of ownership of shop as well as transfer of shop(since there is no right on the shop, there cannot be an element of exchange or extinguishment of right). Thus it cannot be capital gains.
In my opinion, it has to be other sources
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28 March 2011
Initially the question is not very clear. your friend is vacating the property which is occupied as tenant by any one else. Is he arranging this vacation as a broker?
The answer below is based on the following assumption-Your friend is tenant and getting the money for vacation.
Its only a miscellaneous receipt as there is neither transfer of goods/immovable property nor rendering any services. The payer cannot claim it as an expense for business or house property nor a capital expenditure on the property. This shall be miscellaneous receipt taxable under Other Sources.
Assuming your friend is a broker and facilitating this vacation...then could be treated as a business income by IT officer
The answer below is based on the following assumption-Your friend is tenant and getting the money for vacation.
Its only a miscellaneous receipt as there is neither transfer of goods/immovable property nor rendering any services. The payer cannot claim it as an expense for business or house property nor a capital expenditure on the property. This shall be miscellaneous receipt taxable under Other Sources.
Assuming your friend is a broker and facilitating this vacation...then could be treated as a business income by IT officer
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04 April 2011
Sir,
How the person who had paid the money can claim as expenses and under which head. Suppose its business expense under which head will we show this expense
How the person who had paid the money can claim as expenses and under which head. Suppose its business expense under which head will we show this expense
04 April 2011
Please check again.
"""The payer cannot claim it as an expense for business or house property nor a capital expenditure on the property""".
"""The payer cannot claim it as an expense for business or house property nor a capital expenditure on the property""".
04 April 2011
Means its income for the person who is receiving it but the person can't claim it as expenses who is paying it...
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