taxability on sale of property under tenancy rights/pagadi s

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 April 2010 Say I am occupying a house on tenancy rights besis or more commonly known as pagadi system. I sell this house. What is the taxability scenario in this case?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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28 April 2010 Sale of tenancy rights is taxable under the head capital gains.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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28 April 2010 Tenancy right is a capital asset. Its transfer,therefore, attracts provisions of capital gains tax. Cost of acquisition has to be determined under section 55(2) (a) (i) or (ii) of the Income tax Act,1961.