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Compulsory Acquisition

Sir, In which year capital gains tax was to be paid if Comp. Acquisition....2016-17 Enhanced Comp ...2019-20 (via interim order) [Amt on interim recieved] Final order........2020-21 [No amt recieved] Bal. Amt on Final .....2021-22 Order recieved On which P.Y, will the bal. Amt taxed??


SALMAN FARIS

SALMAN FARIS

CA Inter

60K+

06-Mar-21 23:36

16

Answers (3)

Initial compensation is chargeable to tax in the previous year in which such compensation (or part thereof) is first received. - 2016-17 Enhanced compensation shall also be taxable in the year of receipt. In case of interim order it shall be taxed in the previous year in which the final order is made - 20-21


sudha reddy

sudha reddy

Moderator

08-Mar-21 07:52

Sir, Are u saying that the entire Amt of Enhanced Compensation is taxed in the P.Y 2020-21 Is it Bcoz some amt received before final order...? Then when will the enhanced compensation received is taxed in the following case Enhanced Comp. Interim order passed on 2018-19 Final Order on 2019-20 Full Amt received on 2020-21


Salman Faris

Salman Faris

CA Inter

44K+

08-Mar-21 12:45

Sir, Are u saying that the entire Amt of Enhanced Compensation is taxed in the P.Y 2020-21 Is it Bcoz some amt received before final order...? Then when will the enhanced compensation received is taxed in the following case Enhanced Comp. Interim order passed on 2018-19 Final Order on 2019-20 Full Amt received on 2020-21

2020-21. Proviso to sec 45(5) states "any amount of compensation received in pursuance of an interim order of a court, Tribunal or other authority "shall be deemed to be income chargeable under the head "Capital gains" of the previous year in which the final order of such court, Tribunal or other authority is made;..... The PY in which final order is made is 2019-20 if any amount is received before 2019-20 then it is taxed in 2019-20 but no amount received on interim order, full amount is received after final order then it is taxed in the year of receipt


sudha reddy

sudha reddy

Moderator

08-Mar-21 13:45

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