Capital receipt

the entire amount would be liable to tax at 20 per cent with eligibility for the benefits of Sec. 54F or 54EC, if it is possible to reinvest the amount either in a residential house property or bonds, subject to the conditions thereunder.

Thanx Mr Naveen .But can you please refer any case law for this.

Madam,

Kindly clarify as to in what position was the person occupying the house if he was not a tenant. And if he was not a tenant, then the owner was not liable to give him any compensation for vacating the property. The fact that the owner had to pay out cmpensation, indicates that the person occupying the property had tenancy rights. And compensation for sale of tenancy rights is a capital receipt.

Even if the person has occupied possession illegally, the owner cannot dispossess him from the property, even though he is the owner as per the Specific Relief Act. In this case I think that the possessor of the property automatically assumes tenancy rights.

However clarification regarding the nature of occupancy will be helpful.