What will be the tax liablity for accepting money on a rented premises recieved for vacting the premises after fourty years. Example aquired in 1970 wilh no deposit. Now in 2010 may thirty lacks. What will be tax treatment.
skjadvt (Tenancey expert. ) (49 Points)
26 June 2010What will be the tax liablity for accepting money on a rented premises recieved for vacting the premises after fourty years. Example aquired in 1970 wilh no deposit. Now in 2010 may thirty lacks. What will be tax treatment.
Venkateswara Rao Sapare
(Accountant)
(1500 Points)
Replied 26 June 2010
Does it get a treatment of "Capital Gains"?
Please, cross check the same.
As per the existing principles of accounts, this sort of receipts would be treated as "Revenue Receipts".
Amir
(Learner)
(4016 Points)
Replied 26 June 2010
Receipts will be taxable as Transfer of tenancy rights.....
Cost of Acquisition & Improvement will be "Nil"
Important question is whether the same will be chargeable as Long term or Short tem?
Law is silent on the above question.
skjadvt
(Tenancey expert. )
(49 Points)
Replied 26 June 2010
it will be lomg term capital gain , my problem is how much tax payable what deductions possible.
DT Fundas - Tarun rustagi
( Author)
(1150 Points)
Replied 26 June 2010
dear friend
cost of acquisition and improvement will be nil in this case.i think u can claim exemption u/s 54EC.
regards
tarun rustagi
CA Saurabh Shukla
(Accounts Executive)
(223 Points)
Replied 26 June 2010
Yes, In this case Assessee can claim sec 54EC because it is LTCG.
U Can also go for Sec 54F. You can purchase or construct Residential House and u will get Propotionate Deduction.
Please see Sec 54EC & 54F for more clarification.
Please correct me if i m wrong
ghanathey rajesh
(AUDIT ASSISTANT)
(21 Points)
Replied 27 June 2010
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