Capital gain exemption for compulsory acquisition

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This discussion clarifies how to handle capital gains tax exemption when an asset is compulsorily acquired by the government for projects like road extensions. It confirms that income fully exempt from tax, as stated in the agreement, should be reported under the 'Exempted Income' category in Schedule EI of your Income Tax Return (ITR), rather than under capital gains.

TAMILSELVI.M

TAMILSELVI.M (Querist)
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28 July 2023 Asset has been compulsorily acquired by the government for road extension and it is stated in the agreement that fully exempt from income tax. If the above-mentioned subject is related to RFCTLARR ACT, then how to file the exempted income in ITR ( under capital gain or under exempted income category)