Compulsory acquition of land

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 April 2015 My assesse have owned Agricultural Land in Rural Area and it was acquired by the Union and given compensation worth Rs.1,17,30,000/-
Now My question is it is Taxable in the hands of the Assesse.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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14 April 2015 No, Rural Agriculture Land is not covered under the definition of Capital Asset and as such no taxable capital gain arises on transfer of a non-capital asset.
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It is not taxable. The income is exempt U/s 10(37) also.
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