Capital Gain on Compulsory Acquisation by Govt.

This query is : Resolved

Guest

Guest (Querist)

20 August 2008 If the initial compensation is less than the cost of acquisation the in such a case will treatment will be given,

Weather capital loss will be treated or remaining part of caost of acquisation will be set off with additional compensation.

E.g.

A property is compulsory acquired by govt. by paying initial compensation of rs. 250000 on 1.1.2008. Cost of Acquisation being rs. 500000. Later on on 1.5.2010 govt. accepts additional compensation of Rs. 300000. Will be the tax treatment in A.Y. 2008-2009 & 2011-2012

Thank You

Kunal Agrawal
kunalagrawal@aol.in
+91-99295-03735

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

02 April 2012 In AY 08-09 the total cost of acquisition/indexed cost of acquisition shall be reduced from the total sale consideration.

The balance shall be capital loss and shall be carried forward.

In AY 11-12

The additional compensation of Rs. 3 lakhs shall be taxable as capital gain. From this capital gain, the brought forward loss shall be set off and the balance shall be taxable as capital gain.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Rahul Kulkarni

suresh kotte

Shashank S Gore

chandradhass sathish

THOMAS JOHN

Subscribe Now

Capital Gain on Compulsory Acquisation by Govt.

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA