Treatment of compensation
This query is : Resolved
23 July 2014
I have a flat which has been given to tenant on rent now he is not doing vacant of my flat against he is demanding Rs 500000/- I want to sale may flat to other one. I have settle the matter and give hive Rs 300000/- by cheque as compensation now how I will treat it. is it assumed addition cost of my flat.is it right?
23 July 2014
the amount paid to tenant is deductible expenditure u/s 48 (1)CIT Vs. Shakuntala Rajeshwar 160 ITR 840 (Delhi).
CIT Vs. A. VENKATARAMAN AND OTHERS 137ITR 846
sir, as per agreement of sale , the seller is under obligation to hand over vacant possession to the purchaser. if the property is not vacant, possession can not be handed over , which is also a precondition in sec53A of transfer of property act. however different courts has taken different view, wheather amount paid to tenant is cost of improvement or expenditure in relation to transfer
but in any case, it is alloawble in calculation of capital gain
CIT Vs. A. VENKATARAMAN AND OTHERS 137ITR 846
sir, as per agreement of sale , the seller is under obligation to hand over vacant possession to the purchaser. if the property is not vacant, possession can not be handed over , which is also a precondition in sec53A of transfer of property act. however different courts has taken different view, wheather amount paid to tenant is cost of improvement or expenditure in relation to transfer
but in any case, it is alloawble in calculation of capital gain
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- HSN Details in IFF/GSTR-1 & in GSTR 9
- Tax on capital gains revoked us 54f
- Refund of AY 22-23
- Should I include march foreign salary received in April in my income for FY 2023-24?
- Inventory of finished goods
- Filing of Form 10BB instead of Filing Form 10B
- Applicability of Ind As to associate of associate
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- GST APPLICABILITY ON POLLUTION CHECK SERVICE
- Confusion around Form 26QB fields
- TDS Deduction Online Learing Platform
- Point (III) 9 of GSTR-9C
- MIS MATCH OF INVOICE NUMBER
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- CASE INTIMATION OF LIABILITY UNDER SECTION 73(5)(Rule 142(1A)
- Need to correct "Whether it is last installment " response in Form 26 QB
- GSTR3B IMS Deshboard ( Rec. Solution )
Trending Online Classes
CAclubindia
