Home > Money > Question

Sign In | Create an account

Language:

Now in हिन्दी too

Need Expert Advice?Our Gurus Can Help

Land Acquired for Road Development: Tax Implications for 6000 sq ft Plot?

T S Khurana |398 Answers |Ask -Follow

Tax Expert - Answered on Jan 28, 2025

A certified management accountant since 1993, T S Khurana is a fellow member of The Institute of Cost Accountants of India. His areas of expertise are income tax, specifically litigation cases, and GST.

Since the last 21 years, he has also been providing expert advice on financial matters, including investments and diversification of funds, and wealth building in the long term to his clients.
He believes that investment in real estate is the safest way for better returns and wealth generation over a period of time.

A former chairman of the Chandigarh Chapter of Institute of Cost Accountants of India, T S Khurana has also served as member of its technical committee.... more

Question by Chappad on Jan 27, 2025Hindi

Money

Hello Sir, I had a quarter acre of land which I bought for Rs 56 a sq foot. in 2005. A portion of this land, about 6000 sq ft has been acquired by the NHAI in 2023 for road development for which I got a compensation of Rs 300 psf. What is the tax implication on this?

Ans: 01. As per details provided, you have a LTCG (Long Tern Capital Gain) of Rs.14,64,000.00 (6000*(300-56)), without Indexation..
02. It shall be covered in F/Y 2022-23 or 2023-24 depending upon the date you received compensation. You tax calculations shall be different & depend upon the f/y in which the transaction falls. Benefit of indexation will also depend up to the date of transaction.
03. Date of purchase is also required for exact calculation of LTCG.
04. Assuming, your purchase is during f/y 2005-06 (117) & Sale is during 2023-24 (348), your LTCG tentatively shall be about Rs.8.00 lakhs, after Indexation.
05. This LTCG is likely to be taxed @20% (Rs.1.60 lakhs).
06. Many other factors will effect your tax calculations, like Other Incomes, Tax Savings etc., during this f/y under reference.
07. You may adopt tax planning to save LTCGs, by investing in House Property or Capital Gain Bonds etc.
Most welcome for any further clarifications. Thanks.

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

You may like to see similar questions and answers below

Tejas Chokshi | Answer |Ask -Follow

Tax Expert - Answered on Apr 27, 2023

Question by Yoosuf - Apr 25, 2023Hindi

Money

Is the compensation paid by the government after acquisition of my land for road widening taxable"

Ans: The compensation paid by the government after the acquisition of land for road widening is taxable under certain circumstances.

According to the Income Tax Act, 1961, any compensation received by an individual or a Hindu Undivided Family (HUF) for the compulsory acquisition of any capital asset, including land, is considered as a capital receipt and is generally not taxable. However, if the compensation received is more than the cost of acquisition or the fair market value of the asset at the time of acquisition, then the excess amount is taxable as capital gains.

Furthermore, if the land that is acquired was used for business purposes, then the compensation received would be taxable as business income. The compensation would be considered as a revenue receipt and would be taxable in the year in which it is received.

It is advisable to consult with a qualified tax professional or chartered accountant to determine the specific tax implications of any compensation received for the acquisition of land in India.

Latest Questions

Prof Suvasish Mukhopadhyay |500 Answers |Ask -Follow

Career Counsellor - Answered on Mar 12, 2025

Question by Manoj - Mar 07, 2025Hindi

Career

My Daughter is studying ISE 12th Std with Science PCB (without maths). She is not interested in NEET. what are the options after +2. kindly suggest.

Ans: Let her go for the emerging line BIOTECHNOLOGY.Regards.Professor

Milind Vadjikar |1106 Answers |Ask -Follow

Insurance, Stocks, MF, PF Expert - Answered on Mar 12, 2025

Question by arvind - Mar 12, 2025Hindi

Money

Hello Sir, I am having a MAX Life insurance for investment of 5 years and total policy time is 20 years it is having allocation as Balanced Fund -15.65% Secure Fund - 15.70% Money Market Fund II- 15.69% Nifty Alpha 50 Fund - 26.60% Nifty 500 Momentum 50 Fund - 26.60% I want balance the allocation for long term investment as current stock market is volatile. Please help.

Ans: Hello;

What is your current age and risk profile type?

Please clarify.

Thanks;

Milind Vadjikar |1106 Answers |Ask -Follow

Insurance, Stocks, MF, PF Expert - Answered on Mar 12, 2025

Question by Avijit - Mar 11, 2025Hindi

Money

I am 64 yrs old retired person, having worked for 11 years in a private firm from Feb 1998 to Sept 2008. There was no UAN no introduced at that time. After leaving, I withdrew EPF contribution, however towards contributions to EPS I received Pension Scheme certificate for drawing pension after attaing 58 yrs. I attained 58 yrs in Oct 2018, but didn't apply for pension & neither for Scheme certificate with arears. I worked in 3 more private companies for less than 10yrs in each company & withdrew PF contribution after leaving. Finally in Oct 2020 I retired from the last company after putting in 9.5 yrs service with a UAN no. & claimed back the PF & Pension contribution made during the tenure. Please advise as to how i can claim back my EPS Scheme Certificate along with the arears for the period 2018 when I attained 58 yrs till date & also regularize monthly pension. Kindly guide & help, as i am in severe financial crisis but since last 2 years running pillar to post for assistance, but failed.

Ans: Hello;

Please elaborate your job history after September 2008 with EPF/EPS contribution/membership status.

Thanks;

Milind Vadjikar |1106 Answers |Ask -Follow

Insurance, Stocks, MF, PF Expert - Answered on Mar 12, 2025

Asked by Anonymous - Mar 12, 2025Hindi

Money

I was duped of some 8L rs by fraudster and had completed the legal process where in court has ordered indusind bank and bank of Maharashtra to refund me money which is held by them..it been more than month since order was issued still no update is available from bank regarding credit back of the amount in my account.what next I should do..

Ans: Hello;

Send a reminder notice to the banks seeking time bound implementation of the Court order.

Either they may be preparing to appeal against the lower court order or it may be just a case of procedural delay.

Await their feedback before escalating to the court.

Best wishes;

Milind Vadjikar |1106 Answers |Ask -Follow

Insurance, Stocks, MF, PF Expert - Answered on Mar 12, 2025

Question by P - Mar 11, 2025Hindi

Money

My loans have crossed 40 lakhs and i dont have job. I dont know what should i do as i do not have any money to pay back. I am taking loans to repay interest for old loans.

Ans: Hello;

Sell some of your asset like land, gold or vehicle to repay the loan on priority.

Don't borrow to repay existing loans. Restructure the loans or seek a moratorium till you get a job.

Borrow funds from family and friends explaining your mistakes and promise to repay once you get another job.

Keep in mind the old saying to cut your cloth as per your size and act accordingly.

Best wishes;

Dr Dipankar Dutta |956 Answers |Ask -Follow

Tech Careers and Skill Development Expert - Answered on Mar 12, 2025

Question by Vashu - Mar 12, 2025Hindi

Career

Sir I have 98 percentile in jee mains obc-ncl category uttar pradesh can I get cse or ecce in NIT

Ans: With 98 percentile in JEE Mains and OBC-NCL category, you have a very good chance of getting a seat in NITs for CSE or ECE. However, the exact NIT and branch will depend on the JoSAA cutoff ranks. See previous years' cut off

Radheshyam Zanwar |1412 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Mar 12, 2025

Question by viky - Mar 12, 2025Hindi

Career

If I failed in class 12 in one subject this year. but passed in jee mains. can i still give advanced? considering that I will pass boards in compartment exams with minimum of 75%. Compartment will be in July and its result gets declared in August. Even if im eligible, wont it affect my councelling process. as it is in june july only?

Ans: Hello Viky
You are eligible for JEE (Adv) and there will be no effect on the counseling process provided that you must fulfill all the criteria laid by the IIT institutions.

Follow me, if you like the reply.
Thanks
Radheshyam

Radheshyam Zanwar |1412 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Mar 12, 2025

Question by Accounts - Mar 12, 2025Hindi

Career

My son percentile in jee mains 2025 is 98.55 general Delhi school please tell any nit dtu on any other prestigious institute for cse

Ans: Hello Accounts
Your son has a chance to get admission to NITs or IIITs preferably in CSE or computer-related branches. Best of luck to your son.
Follow me, if you like the reply.
Thanks
Radheshyam

T S Khurana |398 Answers |Ask -Follow

Tax Expert - Answered on Mar 12, 2025

Asked by Anonymous - Feb 17, 2025Hindi

Money

Through joint development agreement with developer,new flats after construction are provided to landowners in lieu of 30% of land provided to developer .There is no cost involved to the owner.What will be tax implications including capital gain for landowner?

Ans: Landowner is liable to pay Income Tax for the portion he is surrendering to the builder. Sale Consideration will be considered as value of developed area on stamp duty rate, you have retained after its Redevelopment.
Most welcome for any further clarifications. Thanks.

T S Khurana |398 Answers |Ask -Follow

Tax Expert - Answered on Mar 12, 2025

Question by Raj - Feb 18, 2025Hindi

Money

i have a flat in mumbai which has gone for redevelopment. out of total area i am surrendering 400 sq feet to builder. will my money be liable for Income tax

Ans: Yes. You are liable to pay Income Tax for the portion you are surrendering to the builder. Sale Consideration will be considered as value of developed area on stamp duty rate, you have retained after its Redevelopment.
Most welcome for any further clarifications. Thanks.

See more questions »

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

Video Reply
Audio Reply

WhatsApp
Facebook
Twitter
Copy link

Delete

Close

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus

Sign up

email

uname

mobile no

Country Code

Mobile number

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

LOGIN

x