29 March 2012
Right to acquire a property held for more than 36 months when surrendered at a profit without acquiring property will be a short term or long term? Pls advise. Tks
29 March 2012
Extinguishment/ surrender of the Right in an immovable property is "transfer" u/s 2(47) for the purpose of capital gain. once it is taxable under the head capital gains, we need to look at section 2(42A)for the purpose short term or long term. sine the right in property is held for more than 36 months, it is taxable as long term capital gain.