a person recd a compensation for rs 5 lakhs from the govt for land acqusition.tds of rs 50000 has been deducted.it is a non agricultural land. the person is a salaried employee. while filing his return of income how to compute. he does not have the details of cost price of the land purchased as it was bought long time back.
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Taxability for compensation recd for land acquisition
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You should go to land revenue dept and findout fair market value. The cost shld be deducted from sale and only profit is chargeable to tax. I donot know how govt purchased, khata letter shld have the value of land. Kindly check the documents for the cost of purchase.
@ Suja Pirama:
Is land acquired as a compulsory acquisition or otherwise? Where land / building is compulsorily acquired then in that case FMV is not required as the value is itself determined by land acquisition officer.
Regarding purchase details, if it is inherited then land extract, basic details as to ownership etc will be available. Regarding cost you can get it from talati' office by making an applucation. From that you can get the details.
The indexed cost of purchase (if it is beyond 3 years) else only cost of purchase will be subtracted from compensation recd, the balance will be capital gains.
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