Compulsory acquisition of land and builidng

CLIENT RECEIVED RS 15 LAKH FROM STATE GOVT AS COMPULSORY ACQUISITION OF HIS LAND & BUILDING ON AUGUST 17.

IN MARCH 2018 THEY RECOVERED RS 1.5 LAKH FROM BANK ACCOUNT  AS TDS @ 10% AFTER GIVING A NOTICE THAT ACQUIRED LAND IS NOT ACQUIRED THROUGH  Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013  AND SAME IS ACQUIRED BY PREVIOUS LAW

MY QUERY IS WHETHER COMPENSATION IS TAXABLE UNDER CAPITAL GAIN?

Replies (1)
yes it is taxable because as per sec 45(5) if asset is compulsarly acquired by central govt then compansation received from court shall be deemed to be the full value of consideration
capital gain will be chargeable to income tax in the year in which compansation is received (here 17-18).
year of transfer for cost of acquisition will be year of compulsary acquisition.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 17 August 2026
Article Assistant

K R Kiran Kumar & Associates

Bengaluru

CA Inter

View Details
Company
21 August 2026
Finance Manager

Resollect Technologies Pvt Ltd

Mumbai

CA

View Details
Company
ARTICLESHIP 08 August 2026
CA Articleship

RSAG & CO LLP

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 24 August 2026
Chartered Accountant Articles

Rohit KC Jain & Co

New Delhi

CA Inter

View Details
Company
27 August 2026
ACCOUNTANT

CHARUPREETI & CO

Noida

Graduate (Any)

View Details
Company
25 August 2026
Senior Accountant

MG Associates

New Delhi

CA Inter

View Details
Company
24 August 2026
Semi-Qualified CA/CA Finalist - Tax, GST, Audit & Accounts

Bharat Shah & Associates

Mumbai

CA Inter

View Details
Company
28 August 2026
Assistant Manager

NRS AND ASSOCIATES

Kozhikode

CA Inter

View Details