Compulsory acquisition of non agricultural land

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Balmeeki Prasad Singh (Querist)
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14 November 2017 sir
Govt of bihar has acquired my non agriculture land and paid rs 76 lac as compensation . does it attract income tax

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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14 November 2017 Pls go through this link for same :

https://www.taxmann.com/topstories/104010000000049477/compulsory-acquisition-of-non-agricultural-land-is-also-tax-free-under-new-land-acquisition-act-cbdt.aspx

Parv Kumar

Parv Kumar (Expert)
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15 November 2017 Capital Gain arise on this transaction...... & same is taxed at 20%

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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12 October 2021 The Central Board of Direct Tax vide the Circular No.36/2016 dated 25.08.2016 came out with a clarification that the exemption provided under Section 96 of the RFCTLARR Act is wider in scope than the tax-exemption provided under the existing provisions of Income-tax Act, 1961. Hence, compensation received in respect of non agricultural land which has been exempted 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 provision of exemption for such compensation in the Income-tax Act, 1961

Therefore, the consideration received from compulsory acquisition of land will be exempt in Income tax.