compansation

Rama Bai case overruled by Finance Act, 2009 in which int. on delayed or enhanced can claim on Accural basis.

Now, it will be taxable under "income from Other Sources." in the year of receipt.

U/s 57, 50% dedution claimed on Int. on delayed or enhanced compensation.

Mr.Sailesh..

10 (37) - Agricultural land acquired by govt. , it is exempt from tax - not taxable..

I think the interest componenet will be taxable under Income from other sources...

The interest on delayed payment is taxable under the head 'Income frm other sources' in the relevant yr. to which the interst relates.

In case of RAma bai and sutlej cotton mills, the in assessee follows accrual system of accounting, then interest shall be spread over the period beginning frm the date on which aset was compulsory acquired, if follows receipt system, then taxable in yr. of receipt

civil court has observed in the order that "all the opponants are directed to prevent deduction of income tax"

now question is still assesee is still liable for taxation?

Originally posted by : shailesh
	"all the opponants are directed to prevent deduction of income tax" now question is still assesee is still liable for taxation?

Clear this statement please.!!!!!!!!!!

Dear shailesh pls. clear your statement....................

Dear shailesh pls. clear your statement....................

Dear all

relative has got compansation by civil court order in LAQ (complusary  land aquisition)case=land cost+delayed interest componant .land is in rural area. in this  LAQ case last sentence is that" all opponants( i.e paying authority i.e. Govt.department) are directed to prevent deduction of income tax.

since land is in rural area(10km away from city with <9000 population) no capital gain tax, but is it possible that no tax on  interest componant recieved, by court order last sentance  consideration?

or assesee still liable for taxation for what he recieved of interest componant in his IT return?

dear shukla sir

pl reply urgently

let assume u get compensation at time and u deposited in bank. So, on that int. u have to pay tax.

So, why not on this int. income.

Int. has no relation with Capital Gain exemption.

and as per my prev. post u can claim 50% deduction on it U/s 57.