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Capital Gain on Compulsory Acquisition of Asset

Sunali (Learner) (1317 Points)

27 November 2009

A person has received compensation on compulsory acquisiton of his shop, however hasn't deposited the same either in Capital Gain Scheme nor invested so as to claim exemption under sec 54 etc.

Is there any remedy available as per the provisions..?

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6 Replies

Hareesh H Sharma (Cleared IPCC..now article) (894 Points)
Replied 27 November 2009

Dear sunali,

I guess sec 54H says the date of calculating the period for exemptions US 54 54B 54 D and 54F will be from the date of receipt of compensation and not date of transfer.So check that out. I dunno about any other provisions

I dint mention 54EC cos i dint read it in the book. So am not sure abt tat part as to whether it can be invested within 6 months from the such receipt of compensation or date of transfer

P-A-W-A-N (TAX - MANAGER AT GURGAON) (541 Points)
Replied 28 November 2009

sec 54H says the date of calculating the period for exemptions US 54 54B 54 D and 54F will be from the date of receipt of compensation and not date of transfer

SEC 54EC not in capital gain account scheme

Sunali (Learner) (1317 Points)
Replied 28 November 2009

Hey guys...of course, the date is considered from the date of receipt of compensation...but the person has received the same in 2008-2009 and haven't deposited the same in Capital Gain Scheme before 31st July, 2009 nor invested the same as per sec 54 etc....

???

C.Balaji (Learner) (1867 Points)
Replied 13 January 2010

Agree with Sunali......the amount has to be deposited in capital gains scheme before the due date of filing return inorder to claim exemption... in this case since it is not deposited no way to go just pay the tax...