Capital gains

Dear Friends

One of our client a resident individual who had an ancestral property (land) which was acquired by Government 20 years back without any considiration. But in FY 11 - 12 Government gave back 12% of the acquired land back to our client.this land which was received is sold by our client to a third person in the same FY ie in 11 - 12 for a consideration of Rs 3lacs.

Now how is the period of holding determined (Short / long term).and what will be the cost of acqusition is he required to pay tax on full value of consideration as cost of acquisition is not known.

Replies (2)
Why this portion of land has been returned by the govt? Whether court directed return of some portion of land? What is the nature of transaction ? In absence of any info we will have to take fair market value as cost of acquisition. For period of holding , nature must be seen Can you provide us with more info?

There was ownership dispute, nd by court order 12% is returned back. 

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