Tax on enhanced compensation for compulsory acquisition

As per me Entire enhance compensation will be taxable in the year of receipt

if only the part is received then taxability is for the amount of full value or the part only ?

Only part receipt is taxable

Enhanced compensation is taxable in the year of receipt.

Computation of capital gain arising from Enhance compensation

Enhance compensation -------
Less Litigation Exp Actual
Less Indexed Cost of Acquisition N.A.
Less Indexed cost of Improvement N.A.

LTCG/STCG Taxable


In short no Indexed Cost of Acquisition and indexed cost of Improvement is allow to deduct from enhance compensation. However Litigation and necessary exp (Advocate Fee, Court Exp etc) are allow to deduct on actual basis.

in addition if you have received interest also then 50% deduction on it allowed in the year of receipt.

Thank you .....

MOST WELCOME MOHAMMED SAMSEER JI