Right to receive compensation becomes the taxable asset after vesting, with claimed additional compensation includible in net wealth. Where land is under acquisition, pre-vesting valuation may be based on the market value ascertained by court determinations; after the Collector takes possession and vesting occurs the asset shifts from the land to the right to receive compensation, which is an indivisible property right assessable from the date of vesting. If additional compensation is claimed and referred to court, that claim may be included in net wealth without deductions for uncertainty, while tax demands on disputed differences may be kept in abeyance with recovery safeguards.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Right to receive compensation becomes the taxable asset after vesting, with claimed additional compensation includible in net wealth.
Where land is under acquisition, pre-vesting valuation may be based on the market value ascertained by court determinations; after the Collector takes possession and vesting occurs the asset shifts from the land to the right to receive compensation, which is an indivisible property right assessable from the date of vesting. If additional compensation is claimed and referred to court, that claim may be included in net wealth without deductions for uncertainty, while tax demands on disputed differences may be kept in abeyance with recovery safeguards.
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