Tds return of agriculture compansation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 January 2016 The compulsory land acquisition of farmers got compensation from the Govt.. and TDS will be deducted from that amount by govt. .should it be taxable or receivable to farmers. and the net amount of compensation is less and interest on compensation is high . most of the portion of compensation is of interest.

so, how much amounts should be taxable for farmer either tax free or not?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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07 January 2016 Interest is taxable U/s 56(2)(viii).
Deduction U/s 57 can be claimed equal to 50% of the interest amount.
Capital Gain on transfer of agriculture land under CA is exempt.

Querist : Anonymous

Querist : Anonymous (Querist)

08 January 2016 but how capital gain is to be count it is compulsory acquisition by govt. of gujarat.
we received total amount 32lacks and tds deducted in 1 account is 8 lacks and in 2nd account 17.80 lacs .. than how s the calculations. for taxability

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