Compensation received on Compulsory acquisition of agriculture land in rural area under which section I need to claim exemption kindly help me in this regards. Can I claim it exemption under section 10(37) of IT Act 1961.
help me with explanation or supportive case law if possible
thank you.
By the provision of Sec 2(14) rural agriculture land is not covered in defination of capital assests, so there is no ques arises on its taxability.It is completely exempt.
Sec 10(37) applicable in respect of compulsory acquisition of urban agriculture land not rural.
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