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Agricultural land treatment
Dear Friends,
There is a case of agricultural land acquisition where in the previous year, the assessee has received enhanced compensation vide High Court Challan. Due to non-furnishment of PAN, TDS @ 10% was deducted. Now the assessee wants to claim refund of the same.
Please guide what can be done and what are the relevant sections.
Regards,
Richa
Replies (3)
If its rural agricultural land no tax liability arises; but if within some specified area, capital gains arises. So, check the tax treatment of original compensation and follow the same.
File ITR of the farmer for the corresponding year and claim refund of any excess TDS.
Yeah sir, it is rural agricultural land. can u please guide me the relevant section?
Regards
Richa
Rural Agriculture land is not considered as capital asset as per section 2(14) of the Income Tax Act.
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