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

T S Khurana

T S Khurana   |487 Answers  |Ask -

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
Chappad Question by Chappad on Jan 27, 2025Hindi
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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.
Asked on - Jan 29, 2025 | Not Answered yet
Thank You sir.
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Sir with 289 in BITs what branch my ward an get ... we have got in Josaa round2 CSE in NIT Goa and Cse in Manipal main campus ...which we shall go for kindly guide
Ans: Sharma, With 289 marks in BITSAT 2025, your ward can secure admission at BITS Goa and BITS Hyderabad campuses. The expected cutoffs for 289 marks include: BITS Goa - Electronics & Communication Engineering (252-293), Electrical & Electronics Engineering (247-283), Mechanical Engineering (216-260), or Chemical Engineering (197-245); BITS Hyderabad - Electronics & Communication Engineering (258-296), Electrical & Electronics Engineering (246-290), Mechanical Engineering (209-260), Chemical Engineering (197-245), or Civil Engineering (195-240). With this score, Computer Science and Engineering remains inaccessible at all BITS campuses as cutoffs range from 279-316 at BITS Goa to 288-308 at BITS Hyderabad. NIT Goa's Computer Science Engineering achieved 86.36% placement in 2024 with an average of ?11.02 LPA, while CSE recorded 100% placement in 2022-23 with ?13.4 LPA average package. Manipal Institute of Technology main campus CSE maintains 77% placement rate for 2025 with an overall average package of ?11.76 LPA, supported by 230+ recruiters including Amazon, Microsoft, and Bosch, though branch-specific CSE data shows approximately 81% placement with ?13.1 LPA average. Both NIT Goa and Manipal offer robust placement support, modern infrastructure, and industry connections, but NIT Goa provides government institute prestige while Manipal offers superior campus facilities and larger recruiter diversity.

Recommendation: Choose NIT Goa CSE for its consistent 100% placement record in recent years, prestigious government institute status, and strong average packages; opt for Manipal main campus CSE if you prefer superior infrastructure, larger recruiter base, and private university flexibility, though placement rates are comparatively lower than NIT Goa's proven track record. With 289 marks in BITSAT 2025, your ward can secure admission at BITS Goa and BITS Hyderabad campuses. The expected cutoffs for 289 marks include: BITS Goa - Electronics & Communication Engineering (252-293), Electrical & Electronics Engineering (247-283), Mechanical Engineering (216-260), or Chemical Engineering (197-245); BITS Hyderabad - Electronics & Communication Engineering (258-296), Electrical & Electronics Engineering (246-290), Mechanical Engineering (209-260), Chemical Engineering (197-245), or Civil Engineering (195-240). With this score, Computer Science and Engineering remains inaccessible at all BITS campuses as cutoffs range from 279-316 at BITS Goa to 288-308 at BITS Hyderabad. NIT Goa's Computer Science Engineering achieved 86.36% placement in 2024 with an average of ?11.02 LPA, while CSE recorded 100% placement in 2022-23 with ?13.4 LPA average package. Manipal Institute of Technology main campus CSE maintains 77% placement rate for 2025 with an overall average package of ?11.76 LPA, supported by 230+ recruiters including Amazon, Microsoft, and Bosch, though branch-specific CSE data shows approximately 81% placement with ?13.1 LPA average. Both NIT Goa and Manipal offer robust placement support, modern infrastructure, and industry connections, but NIT Goa provides government institute prestige while Manipal offers superior campus facilities and larger recruiter diversity.

Recommendation: Choose NIT Goa CSE for its consistent 100% placement record in recent years, prestigious government institute status, and strong average packages; opt for Manipal main campus CSE if you prefer superior infrastructure, larger recruiter base, and private university flexibility, though placement rates are comparatively lower than NIT Goa's proven track record. All the BEST for the Admission & a Prosperous Future!

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