Taxability of enhanced compensation & interest thereon

Compensation enhanced by court deemed to be the income chargeable under the head 'Capital Gains' of the previous year in which such amount is received by the assessee

This is what i know as per my knowledge

Now again, if the land sold was an agricultural land and used for agricultural purposes then it will be exempt under the Income Tax Act.

Thanks Mr Moorthy,

1) If interest is to take as other income , in that case, can we take deduction U/s 57 (iv)

As far as i can recollect you can claim 50% deduction u/s 57.

I would suggest you go through Section 56(2)(viii) for better understanding.

Your Welcome

I have a question regarding enhanced compensation on compulsory acquisition of agriculture land.  I received Rs 3959715 as enhanced value of sale of agriculture land.  TDS Rs 467963 was deducted.  Please advice if amount Rs 3959715 is taxable or not.