Tax on settlement made by Govt for land acquisition

First you need to specify whether Land was Agriculture or not.

If Land is Agriculture the you can take advantage of Section 47(VIII) which says any transfer of Agriculture Land before March 1, 1970 is not treated as Transfer under Income Tax. Since in your case transfer was effected before 40 years thus you can take benefit of this section if such land was Agriculture Land.

Section 194LA says 10% deduction in case of compulsory acquisition. However if Land is Agriculture or the compensation is less then 2,00,000/- then 194LA not required.

1. Exemption is given in case of agricultural land. Agriculture Land transferred before March 1, 1970 is not treated as Transfer under Income Tax.

if you do not satisfy the above-mentioned conditions you have to pay capital gain tax. However there are ways to save this tax.

2.Appropriate capital gain tax needs to be paid (if applicable) and return of income needs to be submitted .

3. You can't avoid deduction of TDS. However you can apply for refund at the time of submitting return of income, if eligible.

4. There are various ways to get exemption from capital gain taxes

at the time of filing you can claim the amount. It will be long term capital gains. The TDS will be adjusted against your tax liability if any and the remaining amount you can claim refund.

Dear Sir,

You can adjust the amount deducted by the authorities to the amount of Tax Payable on Capital Gain if any.

Any excess amount deducted shall be refunded back to you.

Trust this clarifies your query.

Feel Free to get back for further clarifications.

Thanking You.

Regards,

CA Rohit R Sharma

BCOM, CA, LLB - GEN, CERT. FAFP.

You may have to pay additional tax depending on how much capital gain tax works out.

We shall be glad to assist you in computing your tax liability

Yes you need to pay taxes after calculations. You can invest the same in capital gains account scheme and then can utilise that for purchase of residential property to get exemption

Yes. Its a long term capital gain and tax rate is 20% after taking indexation benefit.

You have to pay Capital Gain Tax. Its a long term capital gain. However there are ways to save this Tax. At the the time filing ITR you can adjust TDS amount. Any excess amount deducted shall be refunded.

Dear Sir,

That depends on the amount of Capital gain you have made and the amount of Tax that is deducted.