07 April 2016
I AM WORKING IN A CO HAVING TEA GARDEN IN ASSAM. THE GOVERNMENT HAS ACQUIRED LAND FOR HIGHWAY PROJECT. THE INCOME FROM TEA HAS COME UNDER 60:40 RATIO. PLS TELL ME ANY CAPITAL GAIN ARISES FROM SALE PROCEED RECEIVED FROM GOVERNMENT.
09 April 2016
THE INCOME FROM TEA AS PER RULE 8 IS TAXABLE UNDER CENTRAL INCOME TAX AT A RATIO OF 40:60 NOT 60:40. THE AMOUNT RECEIVED IS FROM ACQUIRE OF AGRICULTURAL LAND AND THEREFORE IT IS OUTSIDE OF CAPITAL GAIN TAX.
CAclubindia
