Capital gain tenant

Tax queries 647 views 3 replies

A tenant occupying a residential flat for many years. The tenant passes away leaving behind legal heirs. The owner of the flat now intends to sell the flat. The legal heirs enter into a litigation amongst themselves over tenancy rights and drags the owner in it as well. The owner agreed to pay a portion of sale consideration to the legal heirs and in return the legal heirs will issue NOC for sale of flat as well as surrender their tenancy rights. How to treat this amount recd by the legal heirs from the owner of the flat?

Thanks.

Replies (3)

The amount received by the legal heirs is subject to tax as income from other sources in their hands.

Any other views?

Liable for caiptal gain, cost of acquistion would be nil in respect of tenancy right.

What all deductions can the tenant avail?

Legal expenses toward litigation.

Rent paid for these many years

Rent payable if any between the period of litigation and settlement


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
ARTICLESHIP 31 May 2026
Article Assistant

KPRS And Associates

New Delhi

CA Inter

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details