Tax on enhanced compensation on acquisition of land
This query is : Resolved
31 July 2012
dear sir
my client has received enhanced compensation on the acquisition of agriculture land situated within the municipal limits. TDS @ 10% has been deducted from the compensation amount. now i want to know that whether the compensation amount received is tax free or not and how we can claim refund of the TDS.
thanks
my client has received enhanced compensation on the acquisition of agriculture land situated within the municipal limits. TDS @ 10% has been deducted from the compensation amount. now i want to know that whether the compensation amount received is tax free or not and how we can claim refund of the TDS.
thanks
31 July 2012
Enhanced compensation is taxable in the year of receipt.
Computation of capital gain arising from Enhance compensation
Enhance compensation -------
Less Litigation Exp Actual
Less Indexed Cost of Acquisition N.A.
Less Indexed cost of Improvement N.A.
LTCG/STCG Taxable
In short no Indexed Cost of Acquisition and ndexed cost of Improvement is allow to deduct from enhance compensation. However Litigation and necessary exp (Advocate Fee, Court Exp etc) are allow to deduct on actual basis.
Computation of capital gain arising from Enhance compensation
Enhance compensation -------
Less Litigation Exp Actual
Less Indexed Cost of Acquisition N.A.
Less Indexed cost of Improvement N.A.
LTCG/STCG Taxable
In short no Indexed Cost of Acquisition and ndexed cost of Improvement is allow to deduct from enhance compensation. However Litigation and necessary exp (Advocate Fee, Court Exp etc) are allow to deduct on actual basis.
31 July 2012
in addition if you have received interest also then 50% deduction on it allowed in the year of receipt.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST on export of services and Input Credit
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Should I report my US salary for January, February, March in Schedule FA?
- Can a partnership firm become partner in a LLP ?
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- TDS on purchase of value vouchers for employees ?
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
