Compulsory acquisition of rural agriculture land

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Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2012 Is interest received on enhanced compensation under compulsory acquisition of rural agricultural land is liable to tax.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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28 July 2012 Yes, Interest received on compensation or enhanced compensation is also taxable in the year of receipt.

OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2012 Its rural agricultural land and tax on compensation on rural agricultural land is exempted

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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29 July 2012 Not exempt from income tax under section 10(1) of the Income Tax Act,1961 as agricultural income being neither rent nor revenue derived from land used for agricultural purposes. Therefore, taxable under 'income from other sources' subject to deduction u/s 57(iv) of the said act.

Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2012 Sir Mr. B.Chackrapani Warrier in an query you only said that rural agricultural land is not a capital asset so compensation received on its compulsory acquisition is exempted.

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