Agricultural land compulsory acquisition regarding

Dear Experts,

Can you please tell me where to show the compensation money received on compulsory acquisition of agricultural land in Noida in ITR-3.

The compensation amount is Rs 7 Lac

Should we show it in Exempt income colum in 'Other income' and in details should mention as 'Compensation received'

Please confirm?

Thans in advance

Replies (4)
As per the section 54B, if agriculture land is in rural area and compulsory acquisition done by government than no tax liability... confirm the same.

Thanx a lot

1. As per sec 45(5) compulsory acquisition of Capital asset will be chargeable to tax in the year of receipt of such compensation. 
2. However, if the land is in the nature of "agriculture land" then it will not come within the purview of sec 45(5) and resultantly capital gains will not be chargeable to tax. 
3. In your case, you have mentioned it as agriculture land and hence the compensation will be exempt from payment of tax u/s 10(37) and no capital gains will arise. 
4. The same should be mentioned in the appropriate column in relevant ITR. 
Please correct me if the above solution has an alternative view. 

Show the compensation in ITR under Exempt Income schedule EI under any other
( if Agri Land falls under exempt Agri Land category)

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
08 August 2026
International Corporate Tax Advisory

Shulke

Bengaluru

CA

View Details
Company
ARTICLESHIP 10 August 2026
Article Assistant

Suraj Garg and Associates

New Delhi

CA Inter

View Details
Company
13 August 2026
Chartered Accountant (FP&A)

Client of Trellis Consulting

Gurgaon

CA

View Details
Company
ARTICLESHIP 17 August 2026
CA Article Trainee

ASC Group

Noida

CA Inter

View Details
Company
Featured 19 August 2026
Chartered Accountant

apricus india

Pune

CA

View Details
Company
ARTICLESHIP 08 August 2026
CA Articleship

RSAG & CO LLP

New Delhi

CA Inter

View Details
Company
27 August 2026
ACCOUNTANT

CHARUPREETI & CO

Noida

Graduate (Any)

View Details
Company
25 August 2026
Senior Accountant

MG Associates

New Delhi

CA Inter

View Details