Taxability of enhanced compensation & interest thereon
Devendra Deore (Practice) (41 Points)
24 January 2018Devendra Deore (Practice) (41 Points)
24 January 2018
Manjula Moorthy
(Qualified CS CA Finalist)
(209 Points)
Replied 24 January 2018
Compensation enhanced by court deemed to be the income chargeable under the head 'Capital Gains' of the previous year in which such amount is received by the assessee
This is what i know as per my knowledge
Manjula Moorthy
(Qualified CS CA Finalist)
(209 Points)
Replied 24 January 2018
Now again, if the land sold was an agricultural land and used for agricultural purposes then it will be exempt under the Income Tax Act.
Devendra Deore
(Practice)
(41 Points)
Replied 24 January 2018
Thanks Mr Moorthy,
1) If interest is to take as other income , in that case, can we take deduction U/s 57 (iv)
Manjula Moorthy
(Qualified CS CA Finalist)
(209 Points)
Replied 24 January 2018
As far as i can recollect you can claim 50% deduction u/s 57.
I would suggest you go through Section 56(2)(viii) for better understanding.
Devendra Deore
(Practice)
(41 Points)
Replied 24 January 2018
John Mcguire
(Professional)
(245 Points)
Replied 01 March 2019
I have a question regarding enhanced compensation on compulsory acquisition of agriculture land. I received Rs 3959715 as enhanced value of sale of agriculture land. TDS Rs 467963 was deducted. Please advice if amount Rs 3959715 is taxable or not.