Income tax on agriculture land acquired on 1991

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 May 2011 I had a 1 acre agriculture land and acquired
by govt. for highway purpose in 1991.
The compensation given by the govt.is Rs 20,000.00/Acre. That has been challenged and we have won the challenge in 2010. The high court directed the govt. to pay the land value at Rs 3 lakhs per acre including all statuary benefits and interest from date of land acquisition in 2010.
My question is will that agriculture land compensation decided by court comes under Income tax.

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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11 May 2011 If u fulfill the conditions mentioned in section 10(37) then the gains are fully exempt
Conditions precedent for exemption are as under :
(i) The gain shall arise to an individual or HUF;
(ii) The gain can be short-term or long-term;
(iii) The gain should arise from transfer of agricultural land situated in any area referred to in section 2(14)(iii)(a) or 2(14)(iii)(b).
(iv) Such land should have been used for agricultural purposes by the HUF/Individual or parent of individual for a period of two years immediately preceding the date of transfer.
(v) Transfer of agricultural land shall be by way of compulsory acquisition under any law, or a transfer the consideration for which is determined or approved by the Central Government or the Reserve Bank of India.
(vi) Any such gain should have arisen from the compensation or consideration for such transfer received by such assessee on or after the 1st day of April, 2004.
CA MANOJ GUPTA
JODHPUR
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