Compulsory acquisition compensation for rural agricultural land remains exempt from income tax, preventing short-term capital-gain treatment.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Rural agricultural land does not constitute a capital asset for income-tax purposes. Compensation received on its compulsory acquisition under the RFCTLARR Act is exempt from income tax, applying Circular No. 36/2016. Accordingly, such compensation cannot be assessed as short-term capital gain, and the addition made on that basis was deleted.....