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Compensation recieved on urban agricultural land acquired


karan goel (Student CA Final )     20 February 2016

karan goel
Student CA Final  
 40 points

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Compensation is received on urban agricultural land acquired in two parts:- 1) Sale consideration :- 500000 2) Rehabilitation charges :- 500000 Total 10 lakhs received What will be the total sale consideration for computing capital gains, 5 lac or 10 lac Will rehabilitation charges form part of sale consideration or it would be considered as normal income ?
Shivani Mittal

Shivani Mittal (Practice)     20 February 2016

Shivani Mittal
Practice 
 47 likes  425 points

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Sale consideration is received from govt or non- govt entity ?

karan goel

karan goel (Student CA Final )     21 February 2016

karan goel
Student CA Final  
 40 points

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from govt and no tds deducted

karan goel

karan goel (Student CA Final )     22 February 2016

karan goel
Student CA Final  
 40 points

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kindly reply if someone knows

Shivani Mittal

Shivani Mittal (Practice)     22 February 2016

Shivani Mittal
Practice 
 47 likes  425 points

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Hi,

If this is a case of compulsory acquisition of land, then terms & conditions of such rehabilitation charges received is to be checked for considering it as a sale consideration i.e the enhanced consideration. Refer Sec 45(5) & the following link

https://www.bcasonline.org/onlinebackup/articles/artin.asp?243

Accordingly, sale consideration will be Rs 10 lacs, if the conditions are satisfied else it will be Rs 5 lacs.


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