dear sir my client has received enhanced compensation on the acquisition of agriculture land situated within the municipal limits. TDS @ 10% has been deducted from the compensation amount. now i want to know that whether the compensation with interest amount received is tax free or not and how we can claim refund of the TDS. thanks
Sir if the assessee is an individual or HUF used the land for agriculture purposes for preceding 2 years then the capital gain is exempt under section 10(37) subject to conditions that the consideration is received from govt.
But interest for delay compensation is taxable under IFOS after 50% deduction.
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