Shivaji lokre (PRACTICING CHARTERED ACCOUNTANT) (67 Points)
17 March 2011Hello,
A client has come up with TDS certificates stating that he has got interest on the, compensation payable by the Government on Compulsory land acquisition. We know that we have to tax the interest on accrual basis. However the ROI has to be revised for the past 6 years. So, what practical steps to be adopted in order to revise the return and claim refund or pay taxes as the case my be.
regards,
CA SHIVAJI LOKRE
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 21 March 2011
treat this sum as additional cost of land received,
CA. Praveen Narayan
(Practicing CA)
(259 Points)
Replied 05 March 2012
Dear,
You have to tax the interest in the year of receipt, however you will get a deduction of 50% of interest u/s 57.
No question of revising old returns.
CAclubindia
