Capital gains on compulsory acquisition are taxed on receipt, with enhanced compensation and interim-order amounts governed separately. Capital gains from compulsory acquisition or from transfers where consideration is determined or approved by the Central Government or the Reserve Bank of India are taxed on receipt rather than on transfer. Initial compensation is chargeable in the year first received, while enhanced compensation is chargeable in the year received, with cost of acquisition and cost of improvement treated as nil. Compensation under an interim order is taxable only when the final order is passed, and interest on compensation is taxed separately on receipt.
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.
Capital gains on compulsory acquisition are taxed on receipt, with enhanced compensation and interim-order amounts governed separately.
Capital gains from compulsory acquisition or from transfers where consideration is determined or approved by the Central Government or the Reserve Bank of India are taxed on receipt rather than on transfer. Initial compensation is chargeable in the year first received, while enhanced compensation is chargeable in the year received, with cost of acquisition and cost of improvement treated as nil. Compensation under an interim order is taxable only when the final order is passed, and interest on compensation is taxed separately on receipt.
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