Building and land compensation

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This discussion clarifies whether compensation received for building demolition during land acquisition, specifically for the Delhi-Amritsar-Katra Expressway, is tax-exempt. The consensus is that building compensation is indeed tax-free under Section 96 of the RFCTLARR Act, applicable across India, and any deducted TDS should be refundable. A Supreme Court ruling confirmed the RFCTLARR Act's provisions apply even after J&K's merger with India.

Tejeshwar Singh

Tejeshwar Singh (Querist)
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24 July 2023 As per Delhi-Amritsar-katra expressway i got a compensation for land Acquisition and building demolishing as i know that land compensation is tax free but i want to know about building compensation. As my TDS is deducted for building amount received.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 July 2023 Building compensation also exempt.

Tejeshwar Singh

Tejeshwar Singh (Querist)
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25 July 2023 I am J&K resident then also building compensation exempt.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 July 2023 Yes, it's exempt all over India.

Tejeshwar Singh

Tejeshwar Singh (Querist)
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25 July 2023 Is tds will refund to me?

Tejeshwar Singh

Tejeshwar Singh (Querist)
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25 July 2023 And under which section i will get this exemption

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 July 2023 Section 96 of the RFCTLARR Act, no tax is leviable on compensation received by the land owner under this Act including building.

Tejeshwar Singh

Tejeshwar Singh (Querist)
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26 July 2023 RFCTLARR Act Provisions Not Applicable To Acquistions Under J&K State Land Acquisition Act 1990 : Supreme Court

https://www.livelaw.in/top-stories/supreme-court-rfctlarr-act-jk-state-land-acquisition-act-bharat-petroleum-corporation-ltd-vs-nisar-ahmed-ganai-211595

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 July 2023 Now J and K is merged with India check it's applicable.

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