Land Tax question?

Income Tax Question on Compensation received on compulsary acquisition of agriculture land.?

  • An Individual received compensation on the land compulsary acquired by the govt. It was the agriculture land. The ITO(Income Tax Officer) taxed the entire amount received as compensation. Is the compensation received on compulsary acquisition of agriculture land exempt under section 10 of Income Tax Act 1964. P.S.:Question related to Indian Income Tax.

  • Answer:

    since I had similar problem ,I let you know what my auditor did to me.There is no need to pay tax if : it is an agriculutural land, if it is not in the notified area; if it is in a rural area; if the population is less than 10000; if the land belongs to HUF;if the land is situated about 15 km away from the town.These are some of the exemption points. The best thing is to consult a competant auditor.

satabhis... at Yahoo! Answers Visit the source

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Other answers

you can get excemption u/s 54 of the act and not u/s 10 ...do mail me for any furhter clarifications am a ca final student..

dinesh k

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