Tax treatment for the compensation received from huda

This query is : Resolved

Ramkumar H. Barchha (Querist)
Follow

16 August 2012 The land was acquired by HUDA and the compensation was recveived after the Highcourt judgement. The compensation received consisted of two componenets i.e. the lumpsum payment and interest. Now we need to know the tax treatment for the interest component received.

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

16 August 2012 The wording of the High Court order needs to be taken a due cognisance for deciding the CHARACTER of income. Lumpsum payment is always sale consideration; there is doubt about that. BUT the interest, if any needs to be checked. If it is paid for delay in payment of compensation ... it is income. But if it is for any other reason... the character may change.

Message likes : 1 times