Description
Disposal of a property could give rise to either again or an income, the former being capital in nature, while the latter is revenue in nature. Given this factual scenario, there is a need to, not only appreciate the differences between a gain versus an income but the consequences of such differences.
Typically, when we or our client disposes of a property, the first statute that comes to our mind for compliance is the Real Property Gains Tax Act, 1976. Is this an over simplification and/or being falsely or naively presumptive? How true is such presumption? What happens when this presumption is challenged or turns out to be otherwise?
