Compensation recd.

This query is : Resolved

Mohan Reddy (Querist)
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27 March 2009 An assessee was using a property on rent from a builder of Rs. 100 p.m. The builder paid Rs. 750000/- to assessee as compensation to vacate the property..
Will it be taxable and under which head...

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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27 March 2009 As the money received is a settlement, there will be no tax applicable on it.

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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27 March 2009 IF the assessee previously has right to occupancy then for transfer of such right he is taxable , and the COA will be amount paid for obtaining such right

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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27 March 2009 i support mr. manmohan

Sanjay Soni

Sanjay Soni (Expert)
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28 March 2009 I believe that in this case there is no involvement of right to occupancy. therefore the compensation recd is taxable as " Other Income"

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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28 March 2009 If there is no involvement of right of occupanct, then no transfer and it is a capital receipt & NOT taxable

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