Capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 March 2012 whether any sum received from compulsory acquisition of land by the government

it is taxable under capital gain
if it is a small amount or large amount
if it is not taxable under what section

if it is taxable under what section

regards
phani

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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31 March 2012 1.yes, it is taxable under captial Gain(Rural agricultural land exempt).

2. Any amount if it exceeds cost/indexed cost of acquisition will be taxable irrespective of whether it small or large amount.

3.Exemption U/S 10(37) can be claimed by individual/HUF incase of urban agriculture land which during the period of two years immediately preceding the date of transfer, was being used for agricultural purposes AND consideration for which is determined or approved by the CENTRAL GOVERNMENT (NOT STATE GOVERNMENT) or the Reserve Bank of India.

4.If it not exempted it will be taxable under section 45(5).

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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31 March 2012 Further, it is taxable when the first instalment/first time amount is received u/s 45(5).
TDS is also applicable U/s 194LA if the amount exceeds Rs. 100000.
note:-
The amount is increased in this bget from 1 lakh to Rs. 2 lakh.

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