Income Tax on Comp Accqu of Agr Land

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Debabrata Mishra (Querist)
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11 November 2008 Sir,
My father had an agricultural Land situated out of Municipal area. It was old land and inherited property. My Father is senior citizen. By the order of state govt one private company accquired the land and pay the money without TDS with cheque. My father has filed the IT Return without paying capital gain tax. Is there any implication of capital gain tax?

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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11 November 2008 agricultural lands satisfying the conditions laid down under section 2(14)(iii) of Income Tax Act are not capital assets and therefore no capital gain would arise in their case.