Tax on sale of plot

Tax queries 263 views 4 replies

Akash

proprietor

82 Points Joined April 2017

Dear All, I got my compensation from Noida Authrity & also I got a plot in compensation from NOIDA authority. Later I sold that plot to someone and got payment by cheque. Now income tax department Noida sent me a Notice mentioning that i have to pay taxes on that. I was in an impression that this money is tax exempted. Please clarify was it really taxable..

Thanx in advance for your valuable suggestions.

Replies (4)

CA Rashmi Gandhi

Chartered Accountant

86505 Points Joined April 2011

Please clarify the nature of compensation you received

Akash

proprietor

82 Points Joined April 2017

I got this plot as a compensation from NOIDA authority in connection with their 'Kisaan zameen adhigrahan'. I mean Noida authority accquired my agricultural land and i was compensated for that with some money and this plot.

Regards

CA Rashmi Gandhi

Chartered Accountant

86505 Points Joined April 2011

You have to pay tax on such transaction.
B'coz compulsory acquisition is also considered as transfer.

Consult to your nearby CA for tax implication & other procedures as it will be more helpful than disussing here.
Each & every aspect can't be clear out.

Samuel Vettasseril

2 Points Joined April 2017

I feel you are slightly confused here. You received compensation on the aquisition on which you paid taxes. in addition to the compensation, you received a plot too. You didn't pay any tax on that too. But now subsequently you have sold the plot. This transaction has nothing to do with the aquisition. Taxability on it will depend on factors whether this plot fall under definition of Agricultural land or not.