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Royalty

lalit sharma (No) (166 Points)

17 October 2015

Is royalty received for agriculture land acquired by govt taxable or not ?

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8 Replies

Karthik.V.Kulkarni (Chartered Accountant) (594 Points)
Replied 17 October 2015

Can you please state the specifics of receipt

lalit sharma (No) (166 Points)
Replied 17 October 2015

Actually agriculture land was aquired by the govt. & beside the compensation an amount around rs. 2 lakhs r receiving annually as a royalty . So I want to know whether it is taxable or not

Karthik.V.Kulkarni (Chartered Accountant) (594 Points)
Replied 18 October 2015

If agricultural land is situated in rural are then nothing is taxable but if it is situated in urban area then everyhing is taxable.

lalit sharma (No) (166 Points)
Replied 18 October 2015

But sir agri. Land is compulsory aquired by the state govt. & as u know compensation for urban agri. Land is exempt from tax.

lalit sharma (No) (166 Points)
Replied 18 October 2015

Thanks sir for reply

Karthik.V.Kulkarni (Chartered Accountant) (594 Points)
Replied 18 October 2015

Yes exemption is there if used for agri purpose for two years before.

Karthik.V.Kulkarni (Chartered Accountant) (594 Points)
Replied 18 October 2015

But only capital gains is exempt and not the royalty receipt that you mentioned.the periodic amount the assesse is getting is in my opinion not exempt if it is receieved over and above sale price. Kindly look through the nature of royalty