Capital gain on acquisition of land by government (Direct purchase through agreement)

This query is : Resolved

Vaibhav Kumar Agrawal (Querist)
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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.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 November 2023 Capital gains tax applicable in such a case unless it falls under agricultural land under income tax Act.

Vaibhav Kumar Agrawal

Vaibhav Kumar Agrawal (Querist)
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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

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 November 2023 Good to know the case.

Vaibhav Kumar Agrawal

Vaibhav Kumar Agrawal (Querist)
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19 May 2024 After going through the the case what is your opinion sir ??
Whether capital gain tax is applicable or not

Vaibhav Kumar Agrawal

Vaibhav Kumar Agrawal (Querist)
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19 May 2024 I also request other experts to provide their valuable opinion

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 May 2024 Capital gains tax not applicable in such a case.