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If an individual has received a compensation / reward / muafza from the goverment against the compulsory land acquisition to exapnd highway then where should we declare such amount in Income tax while filing the ITR ?

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013’, shortly known as RFCTLARR Act, which came into effect from January 1, 2014, says  ‘No Income Tax’ or Stamp Duty shall be levied on any award or agreement made under RFCTLARR Act when lands are being acquired by the appropriate government. Thus in your case, as the land was acquired by the government to expand the highway and assuming such acquisition was done after January 2014, then such compensation, reward, or muafza shall be exempt from Income Tax.

  •  ANAS YAWAR
  •  511 Views
  •  Income tax
  •  NEW DELHI



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