Income from other source
This query is : Resolved
24 March 2009
there is an agriculture land i.e. it is not a capital asset.A small area of that land is compulsorily acquired by the state govt. for which compensation is given to the assessee. the land is to be used for laying pipeline. To be more specific we can say out of 100 sq.feet 1 sq.feet is acquired by govt.It is important to note that in the Agreement it is very clear that Ownership will remain with the assessee. But he cant use that area (i.e for the purpose of cultivation or anything else)where pipe line is laid.
My query to the experts is:
1. whether compensation would be taxable
if yes then under which head of income.
please answer specifically & if possible with the help of provisions & caselaw.
if not then also explain the reasons.I think the experts didnot get it I strongly emphasised that Agricultural land is not sold ownership remains with the assessee
My query to the experts is:
1. whether compensation would be taxable
if yes then under which head of income.
please answer specifically & if possible with the help of provisions & caselaw.
if not then also explain the reasons.I think the experts didnot get it I strongly emphasised that Agricultural land is not sold ownership remains with the assessee
24 March 2009
it is a capital receipts. It is exempted in your hand because sale of agriculture land in exempt under the income tax act.
Message likes :
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24 March 2009
no tax payable by you
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