compensation from govt. for compulsory acquisition of land

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Compensation received from the government for compulsory land acquisition, whether for agricultural or non-agricultural land, is generally exempt from tax. This is supported by Section 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013 and CBDT Circular No. 36/2016. While there isn't a specific field in the Income Tax Return (ITR) forms, such compensation should be disclosed under 'Exempt Income' as 'others'.

Renjith.R.s.

Renjith.R.s. (Querist)
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05 December 2020 Is compensation received from government against compulsory acquisition of land for road development is taxable?
1) If land is agricultural-
2) If land is non agricultural

Which form is used for filing ITR?

Please clarify

PARAS CHHAJED

PARAS CHHAJED

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06 December 2020 Compensation for acquisition of any land by Government is exempt. Please refer section 96 of THE RIGHT TO FAIR COMPENSATION AND TRANSPARENCY IN LAND ACQUISITION, REHABILITATION AND RESETTLEMENT ACT 2013 as amended in 2015. Also refer CBDT Circular No. 36/2016.

ITR form shall depend upon status of the assessee and income during the year.

Renjith.R.s.

Renjith.R.s. (Querist)
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07 December 2020 Thanks......Compensation amount should disclose under "Exempt Income " and nature of income as "others" -Is it correct?

PARAS CHHAJED

PARAS CHHAJED

(Expert)
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07 December 2020 Yes. There is no specific place in ITRs to disclose such compensation.

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