capital gain tax

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  1. narendra vanigota

    narendra vanigota New Member

    one of my client who residing in mumbai, sold his office, which is not in ownership basis, it was on pagadi systems i.e. rented & my client paid rent to him

    the cost price he dont know as the office is ancestral property and buy by his father

    whether he is liable to pay capital gain tax ?
    if yes then how to calculate the same ?

    pl advise
  2. ZED

    ZED Well-Known Member

    Yes, capital gain will be applicable.

    If office was sold then assessee must be in business or profession, so what expense were claimed earlier?

    If the property was on pagri system (rent) then what you have relinquished is the tenancy rights, the cost of acquisition of which is deemed to be NIL. [S.55]

    Full amount shall be taxable as capital gain.
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