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Taxability of enhanced compensation in case of agreement to

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Querist : Anonymous

Querist : Anonymous (Querist)

20 October 2017 Dear Sir,
We had sold Agricultural land before 3 years but Sales deed was not executed but Agreement to Sale was considered.But the land is in compulsory acquisition under government rule and the compensation is received in the hands of seller for Rs. 1crore 20 lakhs and the buyer is claiming his rights.
Can you please guide in whose hand the amount will be taxable though the compensation received in the hands of seller and the whole compensation will be transferred in the hands of buyer.What will be the taxability and how to show in books of Accounts

Regards
Sarfaraz Nursumar
8087811562

Amol S Joglekar

Amol S Joglekar (Expert)
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21 October 2017 the person who receives the compensation is liable for capital gain.
Just check if there is any contrary clause in the "agreement to sale" you executed....

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