AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND

This query is : Resolved

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The discussion covers reporting compensation received from compulsory acquisition of rural agricultural land. The amount is generally tax-exempt and should be disclosed in Schedule EI under 'Others.' The query seeks guidance on the correct exempt income category and sub-category to select in ITR-2 or ITR-3.

Rahul

Rahul (Querist)
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24 June 2026 Hello,
One of my client has received amount on account of compulsory acquisition of Rural agricultural land, in itr 2 and itr 3 under exempted income under others i am unable to fill the details as there are sub categories, which this case is not falling, please guide me where to fill the details and which form to choose

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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24 June 2026 * Compensation received on compulsory acquisition of rural agricultural land is generally fully exempt from income tax.
* Do not show it as Agricultural Income.
* Report it in Schedule EI (Exempt Income) → Others.
* Use ITR-2 if there is no business income; otherwise use ITR-3.
* If any TDS under Section 194LA has been deducted, claim the TDS credit and resultant refund.

Rahul

Rahul (Querist)
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24 June 2026 Thank you for the reply sir, under exempted income under others we need select category and sub category, but non of them are falling in our case. that is the main issue, if possible please suggest under exempted income-others-category & subcategory - which category has to be selected and sub category has to be selected, please suggest

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