Assessee has received interest on enhanced compensation of agri land. It includes int u/s 28 and u/s 34 of land acquisition act. Some judgement shown int received u/s 28 is not taxable but some judgement shown irrespective of Rural Agri Land it is taxable and eligible for 50% deduction u/s 57. Plz provide guidance on it .
Menu
Interest On Enhanced Compensation u/s 28 of Land acquisition act .
Replies (1)
Interest received under Section 28 of the Land Acquisition Act is part of compensation and takes the same tax character as the land acquired. Therefore, where the land is rural agricultural land, such interest is not taxable at all, as conclusively settled by the Supreme Court in Ghanshyam (HUF). In contrast, interest under Section 34 is always taxable as “Income from Other Sources”, with a 50% standard deduction u/s 57.
Recent Topic
- ITR form suggestion
- Post office KVP income.
- Free GST invoice tool I built for my practice R
- Clarification on Gratuity Exemption under Section
- GOODS AND SERVICE TAX - GSTR 1
- Correct ITR form
- Clarification required on Section 393 & Report
- Professional advance taxes
- Surrender pan process
- Tds on deceased's pan
Related Topics
CAclubindia
