Compensation Received on Compulsory Acquisition of Land acquired by Central Govt under N.H Act, 1956

Pradip Pal (Business) (21 Points)

29 February 2020  

Whether taxibility on Capital Gain arise or not, on Compensation Received on Compulsory Acquisition of Land acquired by Central Govt under Section 2 of Section 3H under National Highway Act, 1956? 

 

Suppose, Mr.X used the land for his own shop purpose in rural area. Mr.X gets Compensation from Central Govt (National Highway Authority) on compulsory acquisition of land amouting to Rs.1,06,80,152, and TDS has been deducted u/s 194LA @ 10% of Compensation, that is amounting to Rs.10,68,015. 

 

Whether compensation received is fully exempted under income tax act? Get Refund of TDS Amount of Rs.10,68,015 ?