Compensation recieved on urban agricultural land acquired
karan goel (Student CA Final ) (40 Points)
20 February 2016karan goel (Student CA Final ) (40 Points)
20 February 2016
Shivani Mittal
(Practice)
(425 Points)
Replied 20 February 2016
Sale consideration is received from govt or non- govt entity ?
Shivani Mittal
(Practice)
(425 Points)
Replied 22 February 2016
Hi,
If this is a case of compulsory acquisition of land, then terms & conditions of such rehabilitation charges received is to be checked for considering it as a sale consideration i.e the enhanced consideration. Refer Sec 45(5) & the following link
https://www.bcasonline.org/onlinebackup/articles/artin.asp?243
Accordingly, sale consideration will be Rs 10 lacs, if the conditions are satisfied else it will be Rs 5 lacs.