capital gain
This query is : Resolved
20 January 2009
whether interest received on enhanced compensation is capital gain or income from other sources ?
20 January 2009
It is taxable under the head Income from Other Sources.
Message likes :
1 times
20 January 2009
Unless purpose for which compensation is received is known, it may be difficult to form and express an opinion
Message likes :
1 times
21 January 2009
It is Income from Other Sources only.
Message likes :
1 times
21 January 2009
The example is goes like this.. we have received rs.8,50,000 from the gov during nov 2008(enhanced figure 2,00,000 and interest amounts to rs.6,50,000)against compensation received (not on agricultural land)on AY2003-04..
After no returns have been filed. We want to file 2006-07,2007-08 & 2008-09(FY).
The interest portion comprises of earlier years..say from 1998 to 2008 nov..
shall we take the proportionate interest income for 2008-09 only and balance transferred to those two earlier years....
After no returns have been filed. We want to file 2006-07,2007-08 & 2008-09(FY).
The interest portion comprises of earlier years..say from 1998 to 2008 nov..
shall we take the proportionate interest income for 2008-09 only and balance transferred to those two earlier years....
25 January 2009
It is taxable. The following extract will perhaps of be good help to you for approportiong interest income to relevant years.
"Interest on land compensation
Interest must be spread over on annual basis, from date of delivery of possession to date of court order - Where compensation awarded under the Land Acquisition Act is enhanced by the order of the Court on a reference under section 18 of Land Acquisition Act or on further appeals, interest on enhanced compensation cannot be taxed all in lump sum as having accrued on the date on which the Court passes the order for enhanced sum as having accrued on the date on which the Court passes the order for enhanced compensation; the interest has to be spread over on an annual basis right from the date of delivery of possession till the date of the order of the Court on a time basis - K.S. Krishna Rao v. CIT [1990] 181 ITR 408 (SC)/Peter John v. CIT [1986] 157 ITR 711 (Ker.)(FB)"-Source:https://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2008ITAct/casesec5.htm
"Interest on land compensation
Interest must be spread over on annual basis, from date of delivery of possession to date of court order - Where compensation awarded under the Land Acquisition Act is enhanced by the order of the Court on a reference under section 18 of Land Acquisition Act or on further appeals, interest on enhanced compensation cannot be taxed all in lump sum as having accrued on the date on which the Court passes the order for enhanced sum as having accrued on the date on which the Court passes the order for enhanced compensation; the interest has to be spread over on an annual basis right from the date of delivery of possession till the date of the order of the Court on a time basis - K.S. Krishna Rao v. CIT [1990] 181 ITR 408 (SC)/Peter John v. CIT [1986] 157 ITR 711 (Ker.)(FB)"-Source:https://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2008ITAct/casesec5.htm
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation of fixed assets- coop housing society in mumbai
- TDS on Consultancy- Non DTAA
- Reopen of assessment proceeding
- Gift Received from nonblood relative
- EPF FULL & FINAL RULES IN 2026
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- FTS Taxable under 115A
- Rental income gst and it purpose
- Management System (IMS)
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
