Interest received from govt. on agriculture land acquisition

ITR 543 views 2 replies

Naveen Kumar

GM - F & A in SAMCO

41 Points Joined September 2008

I have received the interest amount of Rs. 12 Lac from Haryana Urban Development Authority ( HUDA) against Interest for Land Acquisition 25 years back.

I think the interest amount is for 25 years and it should be exempt.

Pl. confirm that it will be exempt fully of partially in which section.

It taxable then in which section.

Regards

Naveen Kumar

9873492600

Replies (2)

ISSUE 1 – Enhanced Compensation 45(5)

+ Enhanced compensation received by assessee during pendency of dispute before Court cannot be deemed to be his income for purpose of computation of capital gain in year of receipt, in terms of provisions of sec. 45(5). [Hari Kishan v. Presiding Officer (2008) 172 Taxman 219 (P & H)

Dhruv Shah

Article Student

357 Points Joined July 2017

Interest received on compensation or enhanced compensation is taxable as income from other sources[sec.56(2)(ix)] in the year in which it is received regardless of its accrual & deduction is available @ 50% on such amount of interest[sec.57(iv)].
No other deduction is permitted from such amount.