Tds on compulsory acquisition of land

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Querist : Anonymous

Querist : Anonymous (Querist)

06 February 2014 hello,

tds is deducted on compulsory acquisition of land. can it be claimed back? how?
what should be the treatment of compensation received for such acquisition while filing IT return?

Nikhil Kaushik

Nikhil Kaushik (Expert)

06 February 2014 well it is capital gains if the said land was not agriculture land. file the return, and claim the refund is any due.

Gayathri Devi

Gayathri Devi (Expert)

06 February 2014 hi

the income received from compulsory acquisition of land is income from capital gain. If the land was purchased by you before 36 months then you will be entitled to long term capital gain.
In case the land purchased by you with in 36 months and it was taken by government then it is short term capital gain.
You want to file the income tax returns in ITR 2 by mentioning all details and claim refund in case if the total capital gain is less than the basic limit.

Querist : Anonymous

Querist : Anonymous (Querist)

06 February 2014 it is long term capital gain will it be taxable if land is agricultural land?
refund means i can claim tds refund by filing return?

Nikhil Kaushik

Nikhil Kaushik (Expert)

06 February 2014 if it is agriculture land, then there is no tax liability. But if TDS has been deducted, you need to file the return to claim refund...

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