caspital gains tax on rented property

Tax queries 629 views 6 replies

What will be the tax liablity for accepting money on  a rented premises recieved for vacting the premises after fourty years. Example aquired in 1970 wilh no deposit. Now in 2010 may thirty lacks. What will be tax treatment.

Replies (6)

Does it get a treatment of  "Capital Gains"?  

Please, cross check the same.    

As per the existing principles of accounts, this sort of receipts would be treated as "Revenue Receipts".      

Receipts will be taxable as Transfer of tenancy rights.....

Cost of Acquisition & Improvement will be "Nil"

Important question is whether the same will be chargeable as Long term or Short tem?

Law is silent on the above question.

it will be lomg term capital gain , my problem is how much tax payable what deductions possible.

dear friend

cost of acquisition and improvement will be nil in this case.i think u can claim exemption u/s 54EC.

regards

tarun rustagi

Yes, In this case Assessee can claim sec 54EC because it is LTCG.

U Can also go for Sec 54F. You can purchase or construct Residential House and u will get Propotionate Deduction.

Please see Sec 54EC & 54F  for more clarification.

 

Please correct me if i m wrong

 

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