Gaurav (MBA) (144 Points)
25 March 2013Dear Friends,
One of my client has received a certain sum to evacuate a residential property where he was residing since 1974 as a tenant.
Now, this receipt shall be considered as Capital Receipt or is offered to Cap Gain?
If its Capital Gain then how the benefit of Sec 48 (Indexation) be availed as the client is not the real owner, what are the remedies available then?
Thanking you in anticipation
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 25 March 2013
As the tenant has surrendered his right to occupy the property and right being a capital asset it would amount to Capital Gains, because relinquishment of rights amounts to transfer and hence CG arises.
As the tenant is not the owner the Cost of Acquistion would be NIL. However he can claim exmeption u/s 54F or 54EC.
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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