Tax on property received as compensation

Forums Capital Gains Tax on property received as compensation

Tax on property received as compensation

Hi all my question is I had purchased agricultural land from a realestate company but they could not deliver it due to some reasons.Instead they have given me a 2 bhk apartment in another project as a compensation, is this compensation taxable and at what rate.Thanks

Profile photo of Mahesh Dsa Asked By: Anonymous 1 replies 0 helpful answers Last Updated: 3 months, 1 week ago
  • Profile photo of Mahesh DsaAnonymous

    Hi all my question is I had purchased agricultural land from a realestate company but they could not deliver it due to some reasons.Instead they have given me a 2 bhk apartment in another project as a compensation, is this compensation taxable and at what rate.Thanks

  • Profile photo of Chetan ChandakChetan Chandak
    Moderator

    IF you have exchanged your right in land for the 2 BHK flat it may attract capital gain tax. Depending on the holding period of such right the gains will be considered as long term or short term and will be taxed accordingly. LTCG attract 20% post indexation and short term is taxed as per the slab rate.

    But as the right in the property is transferred against the flat in case of long term gain exemption can be claimed u/s 54F and you may not have to pay any tax.

    It will be advisable to consult a tax expert who can guide to you properly after looking into actual transaction.

    Regards

    Chetan Chandak

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