TAXATION ON RIGHT TO PASSAGE
3 years ago
Suppose a person has a piece of land, and he lets others who have houses behind that land to use it as a common road. He only gives that person right to passage, and no ownership of property is transferred. That right to passage is lifetime.
For such right he charges the users a lump sum amount.
What will be the taxability here ?
Ayantika Mondal @ Prime Legal
Responded 3 years ago
A.Hi,
This will fall under income from other sources, according to the Income Tax Act.
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This will fall under income from other sources, according to the Income Tax Act.
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A.Hi,
There is no specific tax on this. If the amount collected is substantial, it will fall under the head 'Income for other sources'.
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There is no specific tax on this. If the amount collected is substantial, it will fall under the head 'Income for other sources'.
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MANOJ KUMAR MISHRA
Responded 3 years ago
A.Yes, tax liabilities will be charged ar the rate of 20% of the profit i.e. lump sum amount recieved for a passage minus actual cost of the passage.
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