Compulsory acquisition

There was compulsory acquisition of land by municipal authorities & in respect of that compensation TDR was received .The question now arises is that whether capital gains tax is attracted u/s 45(5)  & if attracted what is the method of valuing TDR?Further i want to bring to the notice of CA club members that on transfer of such TDR no capital gain is attracted as cost of acquisituion is nil(as determined in various cases)

Please give reference to case laws if there is any in respect of taxability of receipt of TDR in case of compulsory acquisition?

Replies (4)

What is TDR?

I don't think there will be any capital gains on TDR received (Transfer of development rights) for compulsory acquisition.

Capital gain arises on transfer of TDR . 

may be this page help you https://www.accommodationtimes.com/legal/society/faqs-society-legal/tdr-faqs/

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