Capital gain

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indu (Querist)

19 July 2016 hi sir,
i want to know about the treatment of compensation received on aquisition of agricultural land by railways. whether it is taxable as capital gain or not .
secondly one person deposited Rs. 100000/-(one lakh) in pension plan in the name of his wife. the cheque was also given from the account of his wife. can he take exemption u/s 80C for the same . wife is house wife.

thanks

Amol S Joglekar

Amol S Joglekar (Expert)

19 July 2016 Yes, he can get the deduction u/s 80C for pension plan as said above

Amol S Joglekar

Amol S Joglekar (Expert)

19 July 2016 read section 10(37) for acquisition.......if you satisfy the conditions, then capital gain may be exempt
(37) in the case of an assessee, being an individual or a Hindu undivided family, any income chargeable under the head "Capital gains" arising from the transfer of agricultural land, where—
(i) such land is situate in any area referred to in item (a) or item (b) of sub-clause (iii) of clause (14) of section 2;
(ii) such land, during the period of two years immediately preceding the date of transfer, was being used for agricultural purposes by such Hindu undivided family or individual or a parent of his;
(iii) such transfer is by way of compulsory acquisition under any law, or a transfer the consideration for which is determined or approved by the Central Government or the Reserve Bank of India;
(iv) such income has arisen from the compensation or consideration for such transfer received by such assessee on or after the 1st day of April, 2004.
Explanation.—For the purposes of this clause, the expression "compensation or consideration" includes the compensation or consideration enhanced or further enhanced by any court, Tribunal or other authority;
follow the link
https://www.incometaxindia.gov.in/Pages/acts/income-tax-act.aspx

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