Capital Gains on Transfer by way of Compulsory Acquisition of an Asset - (New) Section 67(12) / (Old) Section 45(5)

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....itigation or appeals may continue for years. Section 67(12) addresses this difficulty by taxing compensation as and when it is actually received, instead of waiting for final determination. Manner of Computation of Capital Gain Clause (a): Initial Compensation • Chargeable • Such income under the head "Capital gains". • Taxability Year • In the Tax Year in which such compensation or Part thereof, or such consideration or part thereof  • Compensation Received • the compensation awarded in the first instance or as the case may be, consideration determined or approved by • the Central Government or • the Reserve Bank of India i....

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.... • ​​​​​​​​​​​​​​the cost of acquisition and the cost of improvement shall be taken as nil Exemption [ Schedule 3 (table Sl. No. 18) ] Any income chargeable under the head "Capital gains" arising from the transfer of agricultural land. Such capital assets transferred by an individual or a Hindu undivided family. Following condition required to be fulfilled • (a) Such land is situated in any area referred to in section 2(22)(iii); • (b) such land, during the period of two years immediately preceding the date of transfer, was being used for agricultural purposes by such Hindu undivided family or....

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....€¢ Cost of acquisition shall be taken  to be NIL • If any enhanced compensation is received in pursuance of an interim order of court, Tribunal or other authority, then such enhanced compensation received shall be taxable in the previous year in which the final order is passed by the court, tribunal or other authority. Compensation reduced by any court or Authority • Rectification is to be made to give effect to the reduced compensation. Death of the transferor • It is possible that the transferor may die before he receives the enhanced compensation. In that case, the enhanced compensation or consideration will be chargeable to tax in the hands of the person who receives the same&nbsp....