Capital gain on acquisition of land by government (Direct purchase through agreement)
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25 November 2023
I request all the experts to provide their valuable feedback on the following issue:
Whether compensation received through acquisition of land by government (Direct purchase through agreement) is taxable or exempt from Capital Gain. When land acquisition is done through Land Acquisition Act, 2013 (Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013) then there will be no capital gain. There is no ambiguity in this case. But when land is not acquired under this law but through direct agreement then what will be the taxability.
Whether compensation received through acquisition of land by government (Direct purchase through agreement) is taxable or exempt from Capital Gain. When land acquisition is done through Land Acquisition Act, 2013 (Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013) then there will be no capital gain. There is no ambiguity in this case. But when land is not acquired under this law but through direct agreement then what will be the taxability.
26 November 2023
Capital gains tax applicable in such a case unless it falls under agricultural land under income tax Act.
26 November 2023
Thank u for your reply... But i found a case study where it is written capital gain will not be applicable.... Please refer this case study https://www.courtkutchehry.com/Judgement/Search/t/1185976-seema-jagdish-patil-vs-national
27 November 2023
Good to know the case.
19 May 2024
After going through the the case what is your opinion sir ??
Whether capital gain tax is applicable or not
Whether capital gain tax is applicable or not
19 May 2024
I also request other experts to provide their valuable opinion
19 May 2024
Capital gains tax not applicable in such a case.
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