Compulsory acquisition of land and building by NHAI

This query is : Resolved

Gaurav Sharma (Querist)
Follow

18 July 2023 My client has been awarded compensation of account of compulsory acquisition of land and building by NHAI. My only doubt is whether the compensation received on account of "building" is taxable or not, as compensation received on compulsory acquisition of land is exempt.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

18 July 2023 CBDT vide Circular No. 36/2016 dt. 25/10/2016 clarified that the compensation received in respect of award or agreement which has been exempt from levy of Income Tax vide section 96 of the RFCTLARR Act shall also not be taxable under the provisions of Income Tax Act, 1961 even if there is no specific provisions of exemption for such compensation in the Income Tax Act, 1961. In the said Circular it is also clarified that no distinction had been made towards compensation received for compulsory acquisition of agricultural land and non agricultural land in the matter of providing exemption from income Tax under the RFCTLARR Act.
Here the compensation is paid for land part only. No compensation would have been given separately for building over it.

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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

P.S.Harishankar

Rasheed Mohd Abdul

Sapan Kumar Nayak

Mohammad Abdu Fayaz

bhagat ram goyal

Subscribe Now

Compulsory acquisition of land and building by NHAI

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANCY

CA Final

GST CONSULTANT

Senior Executive

Accountant

Manager- Finance and Compliance