Agricultural land compulsory acquisition regarding

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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)

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