If initial compensation received on Compulsory Acquisition to Legal heirs of the assessee, will it amount to Capital Gains in their hands?
In provision it is written that Enhanced compensation shall be taxable in their hands. what about Initial compensation?
As per my opinion initial compensation and enhanced compensation both are taxable as capital gains in the hands of the legal heirs. Initial compensation is taxable in the year of receipt, while enhanced compensation, being additional, is also taxable in the year of receipt.
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