Ragarding urban land

NAVEEN PAHUJA (Querist) 07 December 2011 This query is : Resolved
WHAT IS THE TAXATION ON COMPULSORY ACQUISTION OF LAND IN URBAN AREAS.

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Raj Kumar Makkad (Expert) 08 December 2011
You can visit the following link for the satisfaction of your query:

http://www.regionalplan-mmrda.org/N-9.pdf

Sivadas Chettur (Expert) 08 December 2011
The compulsory acquisition of land and the compensation paid thereon would attract capital gains u/s 45 of the Income Tax act.You can deduct the cost of acquisition from the sale price. The cost can also be indexed to take care of the inflation and reduction in value of money.If the land was acquired before 1-4-81 then the Fair Market Value (FMV)on 1-4-81 can be substituted in the place of cost. If you have done any improvment then that can also be added to cost with indexation.

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