Devansh Sharma (94 Points)
24 July 2023
jagdish chhugani
(engineer)
(1004 Points)
Replied 27 July 2023
Under Section 10 (37) of the Income Tax Act, Capital Gains on compensation received on compulsory acquisition of urban agricultural land is exempt from tax.
jagdish chhugani
(engineer)
(1004 Points)
Replied 27 July 2023
As per the Income Tax Act, the Rural Agricultural Land has been exclusively excluded from the definition of Capital Asset. Rural Agricultural Land is not a Capital Asset; hence the Income Tax as Capital Gain Tax on the sale of such rural agricultural land won’t be levied, irrespective of the amount involved in the transaction, no capital gain would be levied on the sale of rural agricultural land.
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