Compulsory acquisition of land and builidng

Tax queries 590 views 1 replies

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.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Article Trainee

N N V Satish&co

Hyderabad

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details
Company
Featured 12 March 2026
Customer Relationship Executive

TAXLET

Calicut

B.Com

View Details