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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

Land Owned by

Land Used by

Individual

Individual or his parents 

Huf

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

Case

Taxability
Compensation received after 1/4/2004 Whole Amount Exempt
Some part of compensation received before 1/4/2004 and some later Whole Amount Taxable
Original Compensation recevied before 1/4/2004 but Enhanced Compensation Received on or after 1/4/2004 Original Compensation Exempt,     Enhanced Compensation Taxable
  1. Income from Capital Gains
  2. Exemptions
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
  • Jeetendra Mishra's image
    Jeetendra Mishra
    Aug. 13, 2017, 2:27 p.m.

    if any  person gov. employee and  then he sold urban agriculture land  so in this condition he get exemption under sec 10(37) or not ? 

    plz clarify me

    View answer
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