Section 10(37) Exemption for Urban Agricultural Land

1) This exemption is only for compulsory acquisition of

      Urban agricultural land

      By

      Individual / HUF .

 Following condition must be satisfied

(1) Used for Agricultutal Purpose for 2 years

• The land must have been used for agricultural purposes for atleast last 2 years by Individual or his parents.
• In Case of HUF,it should be used for atleast 2 years by Members of HUF

(2)The compensation or enhance compensation must be received on or after 1/4/2004

Note

1.This exemption is only for Urban agricultural land

Rural agricultures land  is anyways not taxable as it is not Capital asset .

2. In Case,  Compulsory acquisition done before 1/4/2004