Capital Gain on surrendering of Tenancy Rights

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  1. Zuzer

    Zuzer New Member

    One person has received INR 2500000 cash for surrendering tenancy of commercial shop which he/she has acquired on rent 60 years ago.

    How tax compliances will be there? If capital gain is attracted then what will be the cost of acquisition for calculation of CG?
  2. Piyush Chawla

    Piyush Chawla Active Member

    I dont think there would be any cost of acquisition in this case.


    There is no cost of Acquisition . As per my knowledge it would be covered in Income from Other Sources.
  4. ZED

    ZED Well-Known Member

    There will be no cost of acquisition but the income therefrom would be exigible to Capital gain because it is a capital asset and is not excluded from the definition of capital asset. Further, there are a few judgements also which held that relinquishment of tenancy right give rise to capital gain.
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