Compensation money received

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This query is : Resolved

RAHUL WADHWANI (Querist)

12 February 2018 Dear Sir/Mam my client received 84 lacs rupees compensation money from goverment Now plz tell me there is any Taxability of compensation received from goverment on account of compulsory aqusition of land..

Arpit

Arpit (Expert)

12 February 2018 which category of land has been acquired - is it agricultural land or commercial or residential? Answer shall vary accordingly

RAHUL WADHWANI

RAHUL WADHWANI (Querist)

12 February 2018 Sir Its a residential land... but Sir you can plz bifercate all three situations..

RAHUL WADHWANI

RAHUL WADHWANI (Querist)

13 February 2018 ???????????????????????

Arpit

Arpit (Expert)

13 February 2018 if it is a agricultural land as per the definition of Section 2(14)(iii) then it is not treated as capital asset and therefore no capital gain shall be charged.

For all other cases the capital gain shall be computed with reference to the compensation awarded and shall be chargeable as income under the head capital gain of the previous year in which such compensation was received

RAHUL WADHWANI

RAHUL WADHWANI (Querist)

14 February 2018 Ok thanx sir but the capital gain should be calculated by the indexation method or (compensation amount rewarded - purchase deed)