Tax on amount of consideration for surrender of tenancy?

A lady 80 years has inherited rented residential propety from late husband.

she is transferring the tenancy rights to the landlords for a consideration.

queries:

1. will the party deduct any TDS and pay the consideration after deduction of TDS? if so, can this be avoided under any provision?

2. Will any capital gains or normal income tax be payable on the amount of consideration? If so, how would the capital gains and  tax  be calculated?

Presently, no tax return is filed because the person hardly has any income.

thanks for advice.

 

Replies (2)
yes in this case long term capital gains wud arise as there is surrender of rights which is an asset towards consideration received. since this is against the property TDS wud be made @ 1% by purchaser and he will provide yu tds certificate. however if consideration is shown below 50 lacs then tds can be avoided
capital gains wud be actual sale consideration received. there wud not be deduction on account of cost of acquisition. however you can invest the entire sale consideration either in a residential property or 54 EC bonds maximum upto 50 lacs.
thank you for a precise response

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