Compulsory acquisition

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CA
734 Points Joined July 2012

hello friends,

i had purchased a house as on 01/04/1990 worth Rs. 500000.now as the project of metro comes in jaipur, government had compulsorily acquire my house as on 01/04/10 worth Rs.5000000. they said that they will pay me the whole amt in 3 instalments. they give Rs.100000 to me as on 01/05/10. than 2nd instalment is provided to me as on 01/09/12 for Rs.500000 and now as the new government comes in rajasthan, there is delay in payment of the remaining amount. they are saying that they will pay the remaining amt of Rs.4400000 till the end of the year 2014 with interest. now as in the case of compulsory acquisition the whole of the amount is taxable since the 1st instalment is received. i had received 1st instalment as on 01/05/10. Now ITO is claiming the amt of capital gain. I want to claim deduction as per income tax act, but the main problem is that i had just got Rs.600000 till the period of 3 years.

what to do now ?

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On 18 January 2014 at 15:14 Report
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Wealth Manager
5293 Points Joined December 2008

You will have to disclose the details of delay caused by the government decision. AO cannot expect an assessee to do impossible tasks to comply with income tax provision. The AO will understand and give you the needed relief.

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On 18 January 2014 at 15:38
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CA Final Student
325 Points Joined August 2012
Compulsory Acquisition of Assets under any Law
 
Transfer includes compulsory acquisition of a property
under any Law. In such cases, settlement of the amount of
compensation usually takes a long time. The compensation
is initially fixed by the Land Acquisition Officer and is subject
to appeal and re-determination by courts.
The compensation amount may vary as the case
progresses from one authority to another. The transferor may
get paid in instalments as and when a higher authority awards
further compensation.
In cases of compulsory acquisition of an asset, the
Capital Gains is determined on the actual receipt of
compensation and not on the accrual basis. The Capital Gains
is computed by taking the compensation received in the first
instance as the full value of consideration. As and when any
further compensation is received, the same would be brought
to tax as capital gains of the year in which such further
compensation is received.
 
As the deductions in computing the capital gains are
considered while computing the capital gains in the initial year,
no further deductions are allowed in the subsequent

calculations on account of cost of acquisition etc

 

In case the compensation is reduced subsequently, the
Capital Gains for the relevant year would be recomputed
taking reduced compensation as the full value of consideration.
The time period for making investments in a house, in
shares, etc. eligible for deduction from LTCG would be

counted from the date of receipt of the compensation

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On 18 January 2014 at 15:50
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business
52 Points Joined January 2009

is incme tax applicable on compulsary aquistion of land and compensation recd as per Land aquisition and rehabilation act of 2013.( LARR 2013)

can Income tax exempation be claimed as pert sec 96 of LARR 2013

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On 25 July 2016 at 13:14


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