Hi,
This is my case. I booked a flat in an under development project. i paid full cost of the flat to the builder. about 2 years after the booking there was a dispute with the builder. builder raised illegal building infront of the tower housing my flat. I went to court. builder refused to handover the flat. After 2 years of litigation I settled the matter by surrendering the flat to the builder and taking market price of the flat and compensation. This compensation given was much more than the cost inflation index (the market price of the flat at the time of surrender according to inflation index). Will this compensation (gains) attract Capital gains tax. Can it not be treated as compensation. Does compensation attract tax? Since then I have used this compensation to buy some other flat and invested some in REC bond. I need services of CA who has very good experience in handling CGAS cases.Thanks
CAclubindia
