Compensation of compulsory acquisition

1. If such land is urban agricultural land (with satisfaction of certain conditions) then the capital gain (ST/LT) is exempt from tax u/s 10(37)
2. If not, gain is taxable under the Capital Gains.
3. You can use ITR2
4. In order to calculate the refund, cost of acquisition, date of acquisition etc are required
5. Last date tile return is 31st March 2016 (provided assessment is not over)

Thanks for your reply. But I have more queries :

1. How will I know if the land is urban agricultural land with just the Form 16A ? The land has been taken over by Sriperumbuthur Expansion Unit. That is all the details that I know. The assessee does not even have a xerox copy of the old deed.

2. In ITR 2, under which head should I show this amount?

If I show it under LTCG, then I am forced to show it under 20% tax rate. While, TDS was 10% deducted.

Can I show it under exempt income?

Under which serial number adn head should I show it and how?

1. https://www.incometaxindia.gov.in/Pages/utilities/Agriculture-Land-in-Urban-area2014.aspx : utility to find whether the land is urban agricultural area
2. In ITR2, show the income under the head capital gain
3. Yeah if it it long term capital asset, then LTCG is taxable @ 20%. TDS deduction is completely different from actual tax liability. When u file return, tax liability is shown as 20% - 10% already deducted and balance is payable.
4. U can show it as exempt income only if it exempt.

So, if I show it as LTCG, then can I claim ICA and ICI ?

Do I need to have proof for improvement done before compulsory acquisition?

Yeah, if LTCG then ICA/ICI can be claimed.

Regarding proof for COI: /forum/cost-of-improvement-capital-gains-162444.asp#.VXAs_kazmT8

Thanks a lot. So for Vacant land that was acquired, then cost of improvement would be nil is it?

COI is capital expenditure incurred by an assessee in making any additions/improvement to the capital asset. It also includes any expenditure incurred to protect or complete the title to the capital assets or to cure such title. To put it differently, any expenditure incurred to increase the value of the capital asset is treated as cost of improvement.

By the above definition, if no such expenditure was incurred for vacant land, then no COI I think.