Capital Gains Tax Agricultural Land

Save Share

This query is : Resolved

Quick Summary

If your ancestral agricultural land was compulsorily acquired for projects like highway construction, you may be eligible for an exemption on the capital gains. Under Section 10(37) of the Income Tax Act, compensation received for such acquisitions is tax-exempt. You should report this income in the exempt income schedule of your tax return, referencing Section 10(37), to claim a refund of any Tax Deducted at Source (TDS) made.

CMA Omkar.TIlve

CMA Omkar.TIlve (Querist)
Follow

20 February 2022 Mr X held agricultural land (anscestral) which was compulsorly acquired by NHAI for highway construction. X received compensation less TDS u/s 194LA. X doesn't have any other taxable income.

Q: Where to report this income in income tax form so as to claim exemption

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

20 February 2022 Under Section 10(37) of the Income Tax Act, Capital Gains on compensation received on compulsory acquisition of urban agricultural land is exempt from tax.

Show it in exempt income schedule with reference to section 10(37) claim refund of TDS.

CMA Omkar.TIlve

CMA Omkar.TIlve (Querist)
Follow

21 February 2022 Thank You so much Sir

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now