| Question And Answer | |
|---|---|
| Subject: | payments to tenants |
| Category: | Income-Tax |
| Querist: | BKS |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | deduction, Payments to tenants |
| Date: | June 15, 2023 |
landlord pays sums to vacate tenants and then sells building outright.
Can he claim these as costs while computing LTCG ?
Yes, the same can be claimed as a cost of improvement. The Hon’ble Income-tax Appellate Tribunal – Hyderabad Bench in the case of Mohammed Farooq v. ITO [2015] 60 taxmann.com 212 (Hyderabad – Trib.) held that while determining the cost of acquisition, the cost of buildings on the land to be demolished, amounts paid to tenants/unauthorised hutments and litigation expenses should also be taken into consideration.
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