Tdr received through compulsory acqisition

Vinay,

Capital Gains on transfer by way of compulsory acquisition of land and building
[Section 54D]
Eligible assessee – Any assessee
Conditions to be fulfilled
􀂄 There must be compulsory acquisition of land and building forming part of an industrial
undertaking.
􀂄 The land and building should have been used by the assessee for purposes of the
business of the industrial undertaking in the 2 years immediately preceding the date of
transfer.
􀂄 The assessee must purchase any other land or building or construct any building (for
shifting or re-establishing the existing undertaking or setting up a new industrial
undertaking) within 3 years from the date of transfer.
Quantum of exemption
􀂄 If cost of new asset ≥ Capital gains, entire capital gains (short-term or long-term) is
exempt.
􀂄 If cost of new asset < Capital gains, capital gains (short-term or long-term) to the extent
of cost of new asset is exempt.
Consequences of transfer of new asset before 3 years
􀂄 If the new asset is transferred before 3 years from the date of its acquisition, then cost of
the asset will be reduced by capital gains exempted earlier for computing short-term
capital gains.
Income Tax

Balendra Parmar FM

Ventur Lighting India limited.