Whether enhanced compensation received under section 45(5) from govt. be taxable as STCG or the period of holding the asset from date of acquisition to date of compulsory acquisition be taken into account for seeing whether it is LTCG or STCG.
Manmeet Arora (CA) (111 Points)
10 March 2010Whether enhanced compensation received under section 45(5) from govt. be taxable as STCG or the period of holding the asset from date of acquisition to date of compulsory acquisition be taken into account for seeing whether it is LTCG or STCG.
Amit Wadhawan
(CA Final)
(107 Points)
Replied 10 March 2010
Rajat Singhal CA,CS,CFA
(Senior Manager (F&A))
(254 Points)
Replied 10 March 2010
Dear Manmeet,
Amit is absolutely correct nature would be same, and when the additional compensation is recieved the cost of acquisition would be nill only the legal expenses paid if any would be deductible.
CAclubindia
