It on land acq.by govt.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 December 2011 During the year 93-94 my mother gifted some land to me through will. During FY 11-12 govt.acquired the land and release compensation after deducting TDS 10%.

In my IT Computation how I will treat the same - If under Capital Gain? what will be the cost of acquisiton? Whether Indexation can apply? Whether I have to pay any etc. tax from my hand for the same?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

30 December 2011 Such transfer is taxable in your hands under the head Income from Capital Gains.

The cost of acquisition will be the cost at which the land was acquired by your mother.

The period of holding shall be counted from the date of acquisition of your mother to the date of compulsory acquisition.

Indexation benefit will be available.

Capital Gain shall be computed as under:

Sale Consideration
Less: Indexed Cost of Acquisition

The resultant capital gains are taxable @ 20%.