COMPULSORY AQUISITION ON RURAL LAND TAXABLE OR NOT

This query is : Resolved

raghavendra b (Querist)
Follow

25 May 2024 DEAR SIR,

ONE OF MY CLIENT'S INHERITED LAND (SITE) SIZE 34 METER ACQUIRED BY STATE HIGH WAY AND COMPENSATION AMOUNT PAID TO MY CLIENT. THE COMPENSATION AMOUNT RECEIVED BY CLIENT IS TAXABLE INCOME OR EXEMPTED U/S 10(37).
IT IS COMPULSORY SHOW IN ITR OR NOT?
BECAUSE THE PROPERTY INHERITED DETAILS NOT CLEARLY PROVIDED. OR
JUST ENTER THE AMOUNT RECEIVED IN EXEMPTION SECTION 10(37).

PLEASE CLARIFY ME
THANK YOU

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

25 May 2024 Show it under exempt income schedule of ITR.

raghavendra b

raghavendra b (Querist)
Follow

25 May 2024 THANK YOU SIR FOR YOUR REPLY,

UNDER LIST OF FULLY EXEMPTED COLUMN TO SHOW THE AMOUNT U/S 10(37).
IS THERE ANY QUERY WILL RISE BECAUSE THEY DID NOT DEDUCT TDS ON IT.
ANY PROPERTY SITUATED IN RURAL AREA IS EXEMPTED FROM CAPITAL GAIN.

REGARDS

Upgrade to CAclubindia Pro. Subscribe Now!

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

25 May 2024 TDS not deducted hence it's exempt income no queries will be raised.
Show it fully under exempt income schedule.

raghavendra b

raghavendra b (Querist)
Follow

25 May 2024 THANK YOU FOR YOUR REPLIES SIR,

REGARDS

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

25 May 2024 You are welcome..
..

PARAS CHHAJED

PARAS CHHAJED

(Expert)
Follow

31 May 2024 Any compensation received against compulsory acquisition of any land be it rural or urban, agricultural or non-agricultural is exempt from income tax as per the provision of Right to Fair Compensation and Transparency in land Acquisition Rehabilitation and Resettlement Act 2013. Please also refer Circular No. 36 dated 25.10.2016 issued by CBDT. TDS is not required in cse of compulsory acquisition by government. There is no specific column in any ITR for disclosure of such compensation.