Question ID :
38166
Taxability of Corpus fund and other Amenities received
Query :
1. Mr. A is holding Rights in the property, which is old structure of apartment, the said Premises require development and hence Mr. A along with other tenant had made deal with Builder M/s XYZ for Development of the same. In the Aforesaid deal following terms were agreed between parties _
a. In place of old structure, Mr. A and other member will get New Flat along with several amenities
b. All members will also entitle to Corpus Fund to the Extent of Rs. 25,00,000/- each.
c. All members will also entitle to Monthly Rent to the Extent of Rs. 40,000/- P.M. for the First 3 year and if there is delay in completing the project then the Rental as per market rate at that point of time till the allotment of new flat.
d. All members will also entitle to Rs 40,000/- as brokerage for purchasing property on rent.
e. All members will also entitle to Rs 40,000/- as Moving Charges for shifting from property to rented property.
Now the Following Tax queries about the receipt of funds are as under_
? Whether amount receipt as Corpus Fund to Tenant Mr. A is Liable for Tax?
? Tax Treatment of Rent and other allowance received by the tenant?
Query :
2. In the aforesaid Situation , Mr. A want to sell the said property to Mr. B and do exit from the property held by him in that situation following terms between the parties_
a. Mr. A Agrees to sell the said property to Mr. B at reckoner value i.e. 1,50,00,000/- of which Buying Cost is 50 Lacs.
b. However while making the said transaction Mr. B puts an condition that all rights to receive from builder will also get transfer to him and duly agreed by Mr. A which lead to reduction in cost by 25,00,000/- and hence net payable by Mr. B to Mr. A is only 1.25 Cr.
c. Further the entire rental and above other amenities shall be transferred to Mr. B.
Now the Following Tax queries about the receipt of funds are as under_
? Taxability in the hand of Mr. A on transfer of aforesaid transaction?
? Wha
posted by
R C Jain
on
May 27 2019 12:00AM