Taxability of compensation received from government


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Querist : Anonymous

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Querist : Anonymous (Querist)
02 September 2017 If someone received compensation on compulsory acquisition of land by government then whether it is taxable in his hand??

02 September 2017 Absolutely, yes!

The compensation received for acquisition of land by the Govt is capital receipt and the benefit arising from such receipt is taxed as capital gains

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Querist : Anonymous

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Querist : Anonymous (Querist)
03 September 2017 Thanks but can't we take exemption under sec10(37) of income tax clause 3

04 September 2017 If the land is urban agricultural land,as per the definition u/s 2(14) (iii), then the exemption can be claimed

04 September 2017 If the land is urban agricultural land,as per the definition u/s 2(14) (iii), then the exemption can be claimed

04 September 2017 If the land is urban agricultural land,as per the definition u/s 2(14) (iii), then the exemption can be claimed


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