Capital Gain

This query is : Resolved

CA Kamalkhaitan (Querist)
Follow

31 May 2009 If person resident in india sells tenancy rights in tenanted house & invest money in purchasing the residential flat. He is buying the flat first time & it is in the joint name, himself & wife.what will be tax treatment?

CA.BHARAT BHUSHAN

CA.BHARAT BHUSHAN (Expert)
Follow

31 May 2009 You are not eligible for exemption u/s 54.But, I am in doubt whether you will be taxable or not, because you Cost of acquisition can not be computed, hence no calculation of capital gain will be made...you have to made further search for that.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

31 May 2009 With effect from 1/4/1994 transfer of tenancy right attracts capital gains tax as a consequence of amendment in section 55 (2)(a) of the Income tax Act,1961. Cost of acquisition will be considered as NIL. If held for more than 36 months gain will be LTCG and accordingly exemption u/s 54 EC / 54 F can be availed.

Ca.Manish Kulkarni

Ca.Manish Kulkarni (Expert)
Follow

01 June 2009 i agree with the view of mr B c warrier.i think u have acquired the New House and the cost of that new house should be equal or exceeds than the amount of tenancy right.In that case u have not to pay any capital Gain tax.

Ratan Sharma

Ratan Sharma (Expert)
Follow

01 June 2009 Agreed with Mr. B.C. selling tenancy right is chargeable to tax. U can Claim deduction u/s. 54F.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Hmr Babu

Jaya Ladhwani

rana andcompany

Anirudh Sharma

Devendra Singh Jyala

Subscribe Now

Capital Gain

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA