Capital gain

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SHIVANI MAHESHWARI

548 Points Joined February 2011

Please Suggestme on following facts with relevant section and judicial case laws- Assesse’s immovable property had taken over by central government under law running time being in force . assesse received Compensation of Rs. 2 Lacs in FY 13-14 and Balance compensation of Rs. 6 Lacs will Receivable in next years ( date is not Fixed). Calculate the tax liability of the assess for FY 13 – 14 assuming asseesse is 55 years old and asset is Long term capital asset and assesse is having no other income and Cost of Acquisition/Improvement is Zero

Replies (3)

Saurabh Maheshwari

B.com ACA

5923 Points Joined December 2011

Full v. of consideration as per Sec 45(5)	Rs. 8 lacs
Less:Indexed cost of acq	NIL
Taxable LTCG	Rs. 8lacs
If assessee's other incomes(excuding LTCG is less than Basic exemp limit-Rs.2lacs)...Marginal relief in respect of LTCG u/s 112 will be available(assuming the assessee as resident) Relief in your case = 2lacs#... . #(Basic exemp-NIL(other incomes)
Taxable LTCG after relief- Rs. 6 lacs @ 20%

Sohail

142 Points Joined December 2011

full amount of compensation wil b taxable in f.y 13-14 i.e., 8 lakhs though 6 lakhs yet to b received...year of 1st receipt should b considered for reckoning tax liability..