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Taxability on interest on land compensation

16 September 2017

I just want an opinion on interest received on compensation on land acquisition.. Any land mark judgements.. Weather the interest is covered under section 10(37)

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3 Replies

Archit Goel (Student) (96 Points)
Replied 16 September 2017

Interest on compensation /Enhanced compensation is taxable in the year in which it is received under head income from Other sources, however deduction of 50% is allowed under section 57

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Rajkamal Ravesh (3 Points)
Replied 18 September 2017

Thanks archit... But what about the s. C judgement which says that interest on compensation is not interest it is as per land acquisition act must be treated as part of compensation...