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compensation / rent received against compulsory acquisition

Dhruv Jain (Practicioner) (202 Points)

13 June 2018

I have received amt from MMRCL for metro 3 purpose against compulsory acquisition. The receipt will be taxable as Income from HP as rent or will be termed as compensation. if compensation then what will be it's taxability.

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5 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177891 Points)
Replied 13 June 2018

When was the property aquired?

Check if the aquisition is under RFCTLARR act?

How much TDS deducted?

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Dhruv Jain (Practicioner) (202 Points)
Replied 13 June 2018

property acquired by MMRCL in April 18 and TDS was not deducted .

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177891 Points)
Replied 13 June 2018

Follow the notification...... if applicable, it will be tax-exempt

Attached File : 1648935 20180613185727 36 2016 circulars incometax.pdf downloaded: 134 times

Dhruv Jain (Practicioner) (202 Points)
Replied 13 June 2018

Sir, the acquisition is of land and the flats included and the rent is being received on flats so what will be the taxability. They are going to provide us with a new flat later on, till then they are paying us the rent which is expensed out by us as rent only.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177891 Points)
Replied 13 June 2018

When rent is already expended against compensation received, there will not be any taxability. But any excess amount received will be taxed under 'IFOS'