13 October 2011
It is taxable u/s 45(5).It will be treated as transfer in the year in which it is compulsorily acquired but capital gain will be charged in the year in which compensation or part thereof is first received.
17 October 2011
Thanks, but if the capital Gain is received by an Individual & the proceeds are invested in Pur of another site during the same year, does it not get exempted U/s.54F as in the normal course of Sale? Pl. clarify.
17 October 2011
The capital gain will be exempted but U/S 54
In case of compulsory acquisition time limit of 1-year, 2 years and 3-years is applicable from the date of receipt of compensation (whether original or additional).
CAclubindia
