Capital gain under compulsory aquisition

Diiferent views would be available, one of which is:

1. From Government valuer the Fair market value of the land (aquired) is to be ascertained as of 1st April, 1981. That would be cost of aquisition of the land as of the date.

2. Land aquired in 2006, but compensation received in 2016-17, is taken to be trasferred in 2016-17. So LTCG. POT also 2016-17 as the transaction completed in the same year.

3. Sale price of the received land to be taken as same for sale price of aquired land as the time period of receipt of land and sale being same year.

4. There would not be any STCG on new land.

Now, if POT taken as 2006-07 for first land, the second land will be having LTCG of the same ratio, so tax liability won't differ. May check it. Only FMV of 2006-07, wll be required.

Thank you for your advise. 

Really happy to satisfy you. Thanks

In the above case the allotment of land by government was in the Financial Year 2015-16 and now Mrs. X sold the plot in the Financial Year 2016-17.

When will taxability arise in FY 2015-16 if so

1. How will be the tax amount paid if the difference is marginal as there is no funds available with Mrs. X

2. Also as sold actually in FY 2016-17 so in FY 2015-16 it is LTCG and FY 2016-17 it will be STCG if any

Further can be take the POT at the time of actual sell instead of taking it on allotment.

If you wish to take exemption u/s. 54F, the problem gets solved as 2 years time period available.

For payment of Capital gains tax, there are case-laws, where courts have allowed to pay the tax,  in such cases, as and when assessee gets payments from the purchaser.

If i want to opt for either of the 2

1. Deposit in the capital gain account so when shall it be done.

2. Purchase of Tax Free Bonds.

so in both the above cases there is a specific due date. So in case if the POT is on allotment of land by government how can it be considered. Can it be done after the sale of land from the recipt of the sale amount?

Its all streaching of the act. Generally AO do not except any more deviations of the act. So, its better not to complicate the issue. Best solution would be to take help of 54F, as the act provides enough time from POT., or pay tax. Don't take chance of 54EC, as time of 6 months from POT already lapsed.