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Tds on compulsory acquisition of rural agricultural land

Jatin Gupta (35 Points)

23 October 2017

Dear Sir,

I was filing ITR 2 for income

on Interest - 431000

on Pension - 373000

Total income - 8 lac ( approx)

for this when I was filing tax was approx 83000, but when I added compensation of agricultural land acquisition which was 30 lac then total income was 38 lac and full rebate on tax for agricultural income but it still showing over all tax 1.63 lac.

My question is that I am filing my compensation on rural agricultural land in Exempted agricultural income. Is it right or have to fill it in capital gain ?

and tax charging by IT for 31 lac to 38 lac so it is showing 1.63 lac but when i will not this 30 lac then it is only showing 83000/-. Please help.

I really thank you in advance.

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6 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178301 Points)
Replied 23 October 2017

" My question is that I am filing my compensation on rural agricultural land in Exempted agricultural income. Is it right or have to fill it in capital gain?"

No. You should not declare it under Capital Gains.

Just declare it in Exempted income.......

You may file ITR 1

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Jatin Gupta (35 Points)
Replied 23 October 2017

Thanks Dhirajlal Sir,

I will go with ITR-1 only but when I tried this it showed a note in bracket that (Agriculture Income (≤ Rs.5000)) and income was 30 lac so as I used ITR-2.

Can I use the column below after writing nature of income for this.

Attached File : 1906074 20171023114345 screenshot.jpg downloaded: 231 times

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178301 Points)
Replied 23 October 2017

" Can I use the column below after writing nature of income for this."

Yes........ under 'Others'........ 'Sell of Rural Agri. land'

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PARAS CHHAJED (CA Practice ) (1025 Points)
Replied 26 January 2018

Section 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 provides for exemption form income tax for all compensation agaisnt compulsory acquisition of land whether rural or urban and whther agricutural or non-agricultural to all asasseess irrespective of status whereas s. 10(37) of Income Tax Act, 1961 provided for exemption to Individuals and HUFs only for agricultural land. This provision is a special provision. Therefore there should not be any TDS also form compensation for land acquired compulsorily by Government.

Jatin Gupta (35 Points)
Replied 29 June 2018

Dear Sir,

As you said I have filed ITR-1 for my TDS on compensation of rural agricultural land. I filled that amount in others column of Exempt Imncome and wrote(compensation on acquisition of rural agricultural land). But now they sent objection under 143(1) that My income is not matching with form 26as according to them but I filled exact amount in Exempt income column.

Please suggest what should I do. What if I disagree to them or else what Can I do?????

Thanks you very much Sir.

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178301 Points)
Replied 29 June 2018

If the land acquired was rural agricultural land, you can disagree the mismatch and reply accordingly. You can attach supporting documents in support of your claim.