12 May 2020
1 Not taxable it's exempted. 2 The Ministry of Finance vide Circular No. 36/2016 has cleared a cloud of doubt clarifying the issue if compensation received for compulsory acquisition of land is exempt under Income Tax Act as well as Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLAAR Act). 3 Show it in exempt income schedule of ITR.
12 May 2020
Thank you Mr.CA R SEETHARAMAN for your valuable time and reply. One question though.
My property which has been acquired for road widening is located in an urban area in the limits of greater hyderabad municipal limits and is non agricultural. Is the compensation still tax exempted ?
12 May 2020
The notice received for acquiring the property does not have any details as to under which ACT and section the property has been acquired by the government and whether the acquisition for road widening is under a state act or central act. How can we get to know all these details ? Are the GHMC officials supposed to provide an order copy along with notice ?
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