31 December 2011
SIR, I HAVE EXTINGHUSH MY REIGHTS FROM ONE OF THE RENTED OFFICE FOR VANCY OF OFFICE. THE RENT PAID IS NOT SHOWN IN INCOME TAX RETURN.NOW FOR EXTINGUISHMENT OF RIGHT I HAVE RECEIVED CERTAIN SUM IS THIS SUM IS TAXABLE AS CAPITAL GAIN.NOW IF I INVESTED THE CERTAIN AMOUNT IN PURCHASE OF ANY OTHER OFFICE THE WHETHER EXEMPTION UNDER CAPITAL GAIN WILL AVAILABLE OR NOT? IF YES IN WHICH SECTION.
31 December 2011
It is immaterial whether the rent expenditure has been shown or claimed by you in Income Tax in a case where your "HHE" or Drawings are shown at a sufficient level so as to cover the Rent paid also. . U/s 55(2) Receipts against Tenancy Right is taxable as Capital Gains. . No exemption is allowable unless the right is a Long Term Capital Asset. . Where the LTCG is invested for Purchase of office exemption is not available.
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