Tax liability on sale of ancestral property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2012 Hello,

Can someone clarify the tax implication on the compensation received against the acquisition of ancestral property (Sale of Land) from a company?

Further requested to clarify wheather this is taxable under Income Tax or Wealth Tax?

Thanks

In continuation to this I would like to know

1. Is this a capital gain?
2. Is there any ceiling beyond which tax will be paid?
3. How to save the tax?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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21 June 2012 1. It is taxable under the head Income from Capital Gain.
2. If the property has been compulsorily acquired by the Government, then it is taxable in the year in which the compensation is first received.

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