CA CMA CS VIRAG SHAH (9773395720) (759 Points)
01 July 2010SIR/MADAM,
LUMPSUM RECEIPT FOR HARDSHIP & INCONVENIENCE THAT THE MEMBER IS LIKELY TO FACE DUE TO SHIFTING HIS RESIDENCE BEFORE HANDING OVER VACANT & PEACEFUL POSSESSION OF HIS EXISTING OLD FLAT TO THE DEVELOPERS,
WHAT IS THE TAX TREATMENT UNDER THE INCOME TAX ACT ?
THANK YOU ALL IN ADVANCED…..
L V SURYANARAYANAN
(PROP)
(34 Points)
Replied 01 July 2010
whatever the reasons paid for, the lumpsum payment will be treated as part of sale consideration.
Manivannan.C
(article clerk - CA pcc 1st grp cleared)
(80 Points)
Replied 05 July 2010
capital gain only .. . its part of sale consideration
CA B Anand
(CHARTERED ACCOUNTANT)
(198 Points)
Replied 06 July 2010
Mr. Manivannan, can u explain with reason, why it has to be charged under capital gain?
CA Shiv
(Business Controller)
(2987 Points)
Replied 06 July 2010
@ Virag:
What i think from your question is shifting of residence as the developers may be renovating the appartments.
If it is so than it will be trated in Income from Other courses as they are just moving and not tranfering the ownership. And its not a sale...
Pls clarify if i misunderstood the question////
CAclubindia
