Taxability of receipts for vacating a property
What is the treatment of receipts taken by an individual, who was a tenant and received such amount from his landlord for vacating the house property? He further invested this amount in buying his own flat. Can we treat this receipt as capital receipt and show it as a capital gain after claiming the neccesary improvement expenditure? further treating it under section 54F?
You cannot take it as capital gain, since gain is not from transfering or selling of property. The receipt should be taxed under the Income from other sources.