Claim received from govt against farm is taxable or not??

dhanashri (Accountant) (156 Points)

11 May 2014  

Please help me to solve the below mentioned case:

xyz, a farmer having his own farm. But the entire area of land was taken by the govt. for construction of DAM. And govt is paying some claim amount agaist the land to farmer. 

Is that amount received from govt is taxable or not. And if yes, then at what rates it is taxable??

 

Please help me out to solve this query.