Capital gain on compulsory acquisition of ancestral property
This query is : Resolved
03 March 2016
Good Afternoon all,
I would like to gather your expert opinion on a case relating to Computation of Capital Gain on Compulsory Acquisition of Ancestral Property,
Me and my 6 siblings have equal share in an ancestral property which is about to take over by the State Government for a development project.So government released 80% of actual consideration as compensation in AY 2014-15 and the rest 20% in AY 2015-16. in both A.Y they deducted 1% TDS as per section 194IA . My doubts regarding this are given below.
1. In which AY the capital gain actually arises? AY 2014-15 or 2015-16?
2.If Capital gain arise in AY 2015-16, Do i need to show amount received in AY 2014-15?
3.How can I Claim TDS in AY 2014-15?
4. What will be the cost of acquisition of an ancestral property?
I would like to gather your expert opinion on a case relating to Computation of Capital Gain on Compulsory Acquisition of Ancestral Property,
Me and my 6 siblings have equal share in an ancestral property which is about to take over by the State Government for a development project.So government released 80% of actual consideration as compensation in AY 2014-15 and the rest 20% in AY 2015-16. in both A.Y they deducted 1% TDS as per section 194IA . My doubts regarding this are given below.
1. In which AY the capital gain actually arises? AY 2014-15 or 2015-16?
2.If Capital gain arise in AY 2015-16, Do i need to show amount received in AY 2014-15?
3.How can I Claim TDS in AY 2014-15?
4. What will be the cost of acquisition of an ancestral property?
03 March 2016
01. You can show capital gain on receipt basis.
02. If you elect to show the capital gain in AY 2015-16, you will have to show the total amount i.e. AY 2014-15 + AY 2015-16
03. You can claim AY 2014-15 TDS as refund. Alternatively, you can also claim the TDS of AY2014-15 in AY 2015-16. The choice is with you.
04. The cost as on 01/04/1981 as valued by the Govt Approved Valuer may be taken as the cost of acquisition.
02. If you elect to show the capital gain in AY 2015-16, you will have to show the total amount i.e. AY 2014-15 + AY 2015-16
03. You can claim AY 2014-15 TDS as refund. Alternatively, you can also claim the TDS of AY2014-15 in AY 2015-16. The choice is with you.
04. The cost as on 01/04/1981 as valued by the Govt Approved Valuer may be taken as the cost of acquisition.
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03 March 2016
Thanks Sir, Can you please clarify how can we claim TDS of AY 2014-15 in 2015-16?
03 March 2016
Dear
The capital gain will arise in the AY 14 15
As it is the year in which the consideration was received for the first time.
It is applicable irrespective of what amount you receive.
To claim TDs you need file your itr for the relevant at.
The capital gain will arise in the AY 14 15
As it is the year in which the consideration was received for the first time.
It is applicable irrespective of what amount you receive.
To claim TDs you need file your itr for the relevant at.
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03 March 2016
Thanks for your reply sir, but can we consider as capital gain arised in 14-15?
Actually 80% of consideration is given in AY 2014-15 as compensation and transfer of property only completes when full consideration receives IN AY 2015-16.
Actually 80% of consideration is given in AY 2014-15 as compensation and transfer of property only completes when full consideration receives IN AY 2015-16.
03 March 2016
Dear
Does not matter in which fy you receive the full consideration the cg arise in at 14-15
Does not matter in which fy you receive the full consideration the cg arise in at 14-15
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