ONE OF MY CLIENT'S INHERITED LAND (SITE) SIZE 34 METER ACQUIRED BY STATE HIGH WAY AND COMPENSATION AMOUNT PAID TO MY CLIENT. THE COMPENSATION AMOUNT RECEIVED BY CLIENT IS TAXABLE INCOME OR EXEMPTED U/S 10(37). IT IS COMPULSORY SHOW IN ITR OR NOT? BECAUSE THE PROPERTY INHERITED DETAILS NOT CLEARLY PROVIDED. OR JUST ENTER THE AMOUNT RECEIVED IN EXEMPTION SECTION 10(37).
UNDER LIST OF FULLY EXEMPTED COLUMN TO SHOW THE AMOUNT U/S 10(37). IS THERE ANY QUERY WILL RISE BECAUSE THEY DID NOT DEDUCT TDS ON IT. ANY PROPERTY SITUATED IN RURAL AREA IS EXEMPTED FROM CAPITAL GAIN.
31 May 2024
Any compensation received against compulsory acquisition of any land be it rural or urban, agricultural or non-agricultural is exempt from income tax as per the provision of Right to Fair Compensation and Transparency in land Acquisition Rehabilitation and Resettlement Act 2013. Please also refer Circular No. 36 dated 25.10.2016 issued by CBDT. TDS is not required in cse of compulsory acquisition by government. There is no specific column in any ITR for disclosure of such compensation.
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