In tax on money recievd from govt !! from land acqusition

The compensation for land acquired under the RFCTLARR Act is tax exempt under most circumstances, except for certain private negotiations or cases governed by other specific acquisition statutes.

The Central Board of Direct Taxes (CBDT) issued Circular No. 36/2016, affirming the exemption applies broadly, including non-agricultural land, provided the conditions of Section 96 are met.

• Compensation under the National Highways Act, 1956 or other acts listed in the Fourth Schedule of the RFCTLARR Act has seen mixed interpretations; some tax tribunals have granted exemptions, while others have cited specific government memoranda to hold that Section 96 may not apply.

• Ongoing litigation in high courts continues to clarify these nuances, especially for land acquired for highway projects or under other state-specific legislation.

• https://www.scconline.com/blog/post/2024/05/10/income-tax-on-compulsory-acquisition-under-the-nhai-act/

https://incometaxindia.gov.in/tutorials/81.tax-treatment-on-compulsory-acquisition-of-land.pdf

thank you sir ... I will study those in detail.

You are welcome..