Hello everyone,
I have a query with respect to computation of Capital Gains in case of compensation received on aquisition of Immovable Property (other than agricultural land) . Whether we can reduce the cost of land from the total compensation received from the government ? For Example let us assume Mr. A has received Rs. 5 lakhs for the AY 2017-18 as a compensation from government for aquiring the land (non agricultural land) and TDS of Rs. 50,000 /- has been deducted, then should Mr. A disclose entire amount of Rs. 5 lakhs as Capital Gain as TDS was deducted on full consideration without deducting cost of land or can he claim Cost of Land as deduction in his Income Tax Return and claim TDS Credit accordingly ?
Please send me your suggestion on the above matter.
CAclubindia
