If the land is taken over by government, will that be treated as sale and do the assessee has to pay the Capital Gain Tax?? or Is there any exceptions in IT act? please clarify.
Thank you.
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Capital Gain
Replies (1)
Yes, land taken over by governement is chargable to Capital Gains taxation. It is called Compulsory Acquisition of capital asset.
Kindly refer to Sec 45(5) which deals with computaion of capital gains in case of compulsory acquisitions.
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