Capital gain

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Lavisha (Querist)
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13 October 2012 Is capital gain applicable on compulsory acquisition of property by the government ? If yes, then how the calculation is done.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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13 October 2012 i) Immovable property ,generally, is a capital asset. section 2(14).
ii) Compulsory acquisition of a capital asset is transfer. section 2 (47)(iii).
iii) Profit on the transfer of a capital asset is taxable under the head capital gains. section 45 (1).
iv) To save such tax schemes framed under section 54,54B,54D,54E, EA, EB, 54F, 54G. 54H
can be availed, case to case, if the assessee so wish.