banner_ad

Agricultural land compulsory acquisition regarding

938 views 4 replies

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)


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details