Relinquishment of right

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shashikumar

shashikumar (Querist)
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11 February 2013 whether exemptions under section 54 to 54 G of income tax applicable to relinquishment of right.

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
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11 February 2013 Transfer of Capital Assets include relinquishment of rights in an asset and hence the sections on deductions would be applicable.

shashikumar

shashikumar (Querist)
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11 February 2013 Thank you sir,

My question is how to measure the period of holding in case of relinquishmenent

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
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11 February 2013 The date from which you held the right till the date you reliquinshed

shashikumar

shashikumar (Querist)
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11 February 2013 Clarify

My client Mr.X relinquished his right on property and collected money from his elder brother.
They made an arrangement of sale deed as if Mr.X is selling property to his brother.
in fact the "WILL" for the same property not yet made by their parents.
Hence how do we treat the above case.

My question.
1.Since the WILL NOT MADE, MR.X Cannot let
his right forego for money.
2.If the same is covered under 2 (47) then how to compute period of holding, in the absence of deed.
3.Can i treat the above transaction as simple family arrangement and ignore

shashikumar

shashikumar (Querist)
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CA Lokesh Pokharna

CA Lokesh Pokharna (Expert)
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11 February 2013 first of all Mr. x cant relinquish any right, becuase he has nt got any right till now becasue will is not yet completed....

so its a just a family arrangement ,,nothing can be done in taxation law till now..

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