Compulsory acquisition of land

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Bijesh.K (Querist)
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05 January 2017 Will the compulsory acquisition of agricultural land in urban area attract capital gain?
What if
1. the land is not in urban area or
2. land is not agricultural?

C.A. Mayur J. Raiyani

C.A. Mayur J. Raiyani (Expert)
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05 January 2017 the connotation can be stated as below
1. agriculture land situated in rural are is not a capital assets hence not taxable at all.
2. agri land situated in urban area which is compulsorily acquired is also exempt from tax provided it has been used for agri purpose before 2 yrs before the transfer and compensation is received after 31/03/2004.
i hope you got your solution.

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