Capital gain on compulsory acquisition of rural agri. land

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Vimal Sen (Querist)
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29 June 2016 Sir, My Agriculture land is situated within almost 5 km by road from nearest municipal corporation. My land is "compulsory acquired" by central government through state government in year 2004-05. We received compensation on 21.06.2016. Will the capital gain attract on our consideration.
Thanx in advance.

Amol S Joglekar

Amol S Joglekar (Expert)
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30 June 2016 section 10 (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.

Vimal Sen

Vimal Sen (Querist)
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30 June 2016 Thanx alot Amol Sir, but as per my knowledge sec 10 (37) of Income tax Act covers urban lands only. Would it work in my case too ?? My question is still unanswered that will CG attract on my consideration??