01 March 2019
My friend is having a agricultural land in Madhya Pradesh, on which there is High tension Line proposed. Government i.e. M.P.Power Transmission company Limited is giving compensation for the high tension power lines over the agri land. Is the compensation taxable or non-taxable under Income Tax Act 1961. Please suggest.
03 March 2019
Non taxable ,since compensation is for sterilization of income earning source (cultivation cannot be done effectively) and not in the ordinary course of agricultural activities, hence a capital receipt.
CAclubindia
