Search Results For: tenancy rights


QUERY: Mr. T existing tenant wants to surrender his tenancy right in favour of Mr. N as Landlord’s permission is to be taken for transfer they enter into tripartite agreement. Mr. N has to pay Rs. 1 crore and out this Rs. 70 lakhs is paid to Mr. T an existing tenant and Rs. 30 lakhs is to be paid to landlord. Please explain about the taxability of the amount. Whether in the hands of both amount will be charged as capital gain? Who is transferring tenancy rights in favour of N.
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As per section 55(2) of the Act, tenancy right is a capital asset, hence on transfer of it is liable to tax under the

QUERY: Which of the following is the date of transfer of tenancy rights –

(a) date of agreement entered into by the assessee with landlord whereby he agrees to surrender tenancy in lieu of new flat to be allotted to him on ownership (for which tenant will pay construction cost to landlord @ Rs. 1,500 per sq. ft);

(b) date on which the tenant moves into an alternative accommodation so as to enable the landlord to demolish the building and construct new building;

(c) date on which the new building is constructed and occupancy certificate obtained;

(d) date on which the tenant pays the construction cost to the landlord. The agreement provides that if the tenant does not pay construction cost to the landlord within 30 days of being called upon to pay so, he shall continue to be the tenant in the new premises and shall pay rent at a certain agreed rate which is nominally more than the rent which was being paid by the tenant. Also, what is full consideration due to the assessee on transfer of tenancy. The tenant is not eligible to claim exemption u/s. 54F since he already owns 2 houses.
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As tenancy rights are surrendered only when tenant pays for construction cost to landlord. For the reason that the agreement provides that if the tenant does not pay construction cost to the landlord within 30 days of