11 August 2014
Hi, Agricultural land purchase in Apr 14 now Government acquire this land for MIDC. Value of compensation is more than government valuation. What is tax liability is it taxable or exempt please explain in details with IT sections
12 August 2014
pls refer to section 10 (37), urban agricultural land if transfer under compulsory acquisition and if the consideration is determined or approved by govt or RBI , then capital gain is exempt. you have not clarified how the compensation is more than govt valuation. however if ur case does not fall u/s 10 (37), then u can claim deduction u/s 54 B. becoz u/s 54 B, both short term and long term capital gain amount can be invested to avail deduction
CAclubindia
