Compensation received for vacating residential premises

Tax queries 609 views 2 replies

One of  my relatives has received certain sum of money from his builder for vacating the reseidential flat in Mumbai. Just wanted to check whether this compenstaion (received in cheque ) is taxable in the hands of receiver or can we consider this compensation amount as a capital receipt.Please help.

Replies (2)

It is taxable as capital gains

There are many judgements in this regards

How can it be a capital gain, the property is not owned by him.


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