Compulsory acquistion of agricultural land

This query is : Resolved

Varun Arora (Querist)
Follow

24 July 2012 tax treatment of interest received with enhanced compensation on compulsory acquistion of
1) rural agriculture land
2) urban agruculture land

Mohit Naithani

Mohit Naithani (Expert)
Follow

24 July 2012 Any Capital gain on rural agriculture land is exempt from tax. Enhance compensation is also exempt. But The compensation awarded in the form of interest would be taxable as ‘income from other sources’ in the hands of the taxpayer.

Enhance compensation recv for urban land is taxable when it is actually recv by recipient. No Cost of Improvement and Cost of Acquisition is allow to deduct in it but Litigation expense are allow to deduct. Interest recv on enhance compensation for urban land is taxable as income from other sources in the hand of recipient.

Varun Arora

Varun Arora (Querist)
Follow

24 July 2012 Thanks Mr Mohit Naithani for sharing.
please correlate section 10(37) with urban agriculture land case and suggest.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

29 July 2012 1) 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.
2) Same treatment as above.

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

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

Vimlesh kumar

nitin

CA K GIRIDHAR

raval umesh

Suvigya Tiwari

Subscribe Now

Compulsory acquistion of agricultural land

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Accountant

GST CONSULTANT

CA Final

Senior Executive

Manager- Finance and Compliance

GST CONSULTANCY