sir, i am a tenant of a shop, where i do business. i paid rent 1000/- per month , and i am holding the shop for more than 5 years . and i pay rs. 50000/- lump sum to the owner of the property . on 2007. now i want to surrender my tenancy , the owner will pay rs. 150000/- for surrender of tenancy . now my question is 1. what is the tax provision of the amount received? 2. it is a short term or long term capital gain? what is the procedure to save tax ?
1 Answers
In our view, it would be long term capital gains. Income tax @ 20% with indexation benefit should be applicable.
To save tax, amount can be invested into residential house property u/s 54F or into capital gain bonds u/s 54EC.
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