Royalty on land acquisition
Sunil (Student) (48 Points)
31 October 2016Sunil (Student) (48 Points)
31 October 2016
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178083 Points)
Replied 31 October 2016
Depends upon the act under which its aquired. Recently, RFCTLARR Act passed by Modiji Government, which came into effect from 1st January, 2014, provides that income-tax shall not be levied on any award or agreement made [except those made under section 46) under the RFCTLARR Act Therefore, compensation received for compulsory acquisition of land under the RFCTLARR Act is exempted from the levy of income-tax.
As per earlier act also, any aquisition of agricultural land in rural area was tax exempt.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178083 Points)
Replied 01 November 2016
Any compensation received by a farmer on aquisition of his Rural agricultural land is tax exempt