capital receipt or revenue

This query is : Resolved

CA. Vinod (Querist)
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29 October 2010 A tresspasser while vacating the building received some amount.
Whether the amount is his Income or Capital receipt?
If Capital then any role of Capital gain is there or not?

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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29 October 2010 This is neither capital nor revenue receipts.

What do you mean by revenue receipt-is the tresspasser is doing ang business.

This is simply a casual income, which will be covered under residual head " income from other sources".

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Ca Aashish Upadhyay

Ca Aashish Upadhyay (Expert)
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30 October 2010 I agree with shailesh!

Parveen Bansal

Parveen Bansal (Expert)
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31 October 2010 Trespasser has created a right to enjoy the property (Does not matter legal or illegal from tax perspective). Receipt on vacating the property is capital receipt. Since capital receipt, please check whether the receipt is taxable OR not.