Chargblity of tax

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Querist : Anonymous

Querist : Anonymous (Querist)

15 June 2013 under which head is the amount received by tenant from owner of house to leave the house taxable. under which section of income tax act.i am talking about eviction money which is received by the tenant.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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15 June 2013 Generally it is taxable under the head Capital Gains.

CA Kapil Verma

CA Kapil Verma (Expert)
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15 June 2013 it should be come in other sources, as is nature of compensation

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Querist : Anonymous

Querist : Anonymous (Querist)

15 June 2013 under which section of income tax act

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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15 June 2013 Under Section 55(2) what cost has to be taken for the tenancy right has been prescribed.
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Relinquishment or extinguishment of Tenancy right is treated as transfer U/s 2(47).
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Further it is a capital asset as defined U/s 2(14).
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CA Kapil Verma

CA Kapil Verma (Expert)
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15 June 2013 Thanks Sir

Querist : Anonymous

Querist : Anonymous (Querist)

15 June 2013 i am talking about eviction money which is received by the tenant.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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15 June 2013 The reason for the entitlement of eviction money lies in the tenancy rights. If the tenant has not got any such right, the land lord could have thrown him away either himself or by/through court or police.
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No body pays for Free.
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Treat the entire money as Capital Gains. Decide whether it's long term or short term on the basis of his tenancy term.
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