Ltcg question

As per my opinion, the taxability arries when the Govt. Compensation received.

i.e. as above case compensation received in May'08 then, taxability arries in the A.Y.2009-10. The reason behind that, the amount of compansastion not certain, and so it is taxable in the year when it is actual received.

Thanks Dharmesh.........

Can you pls tell the sec covering these type of incomes..

Mr. Dharmesh is right. And in case of death of Mr. A his legal represenative will be liable to pay tax and income will be taxable in the same head in which it was taxable in the hands of Mr.A.

One more point of attention is that its nature will also be same in the hands of legal representative ie. short term or long term whatsoever.

Please refer to section 45(5)