Taxability of enhanced compenstion

This query is : Resolved

LalitKapoor (Querist)
Follow

03 September 2017 Person received an enhanced compensation on compulsorily acquisition of rural agricultural land. Compensation include principal amount and interest amount. Will it be taxable or exempt? If taxable then in what context?

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

03 September 2017 please go through section 10(10BC)
enhanced compensation is exempt.
Interest on compensation is taxable.

Message likes : 1 times

Ashiwini Ballodia

Ashiwini Ballodia (Expert)
Follow

03 September 2017 Interest of 50% will be exempt

Upgrade to CAclubindia Pro. Subscribe Now!

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
Follow

03 September 2017 Compensation received for rural land is exempt.

Message likes : 1 times

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
Follow

03 September 2017 Interest is chargeable under head Income from Other Sources. Exemption of 50% allowed on it.

Message likes : 1 times

LalitKapoor

LalitKapoor (Querist)
Follow

03 September 2017 There is an Act called, Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. Is anything contained under this act for the purpose of taxability as land acquired in 1998 , first compensation was received in 2004 and enhanced compensation was received in 2016?

LalitKapoor

LalitKapoor (Querist)
Follow

03 September 2017 There is an act called, Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. Is anything contained under this act for the purpose of taxability as land acquired in 1998, first compensation was received in 2004 and enhanced compensation was received in 2016?

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

06 October 2017 year of enhanced compensation has NO bearing on its taxability.

Upgrade to CAclubindia Pro. Subscribe Now!