| Question And Answer | |
|---|---|
| Subject: | Compensation under Right to fair, compensation and transparency in Land acquisition, rehabilitation and resettlement Act 2013 |
| Category: | Income-Tax |
| Querist: | Manoj jain |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | compensation, land acquisition |
| Date: | October 22, 2022 |
Assessee is partnership engaged in the business of constructions. Assessee is owner of land, which is acquired under Compensation under Right to fair, compensation and transparency in Land acquisition, rehabilitation and resettlement Act 2013. Assessee firm has Received compensation under this act amounting to Rs 100 Crores.
Whether this amount is taxable under Income Tax in the hands of Firm.
Pl guide.
The receipt of the said compensation is not taxable under the Income tax by virtue of section 96 of RFCTLARRA, 2013. Further, the Central Board of Direct taxes vide CBDT Circular No. 36 of 2016 dated October 25, 2016 [2016] 388 ITR (Stat) 48 has expressly made it clear that that compensation received in respect of award or agreement which has been exempted from levy of income-tax vide section 96 of the RFCTLARRA, 2013 shall also not be taxable under the provisions of Income-tax Act, 1961 even if there is no specific provision of exemption for such compensation in the Income-tax Act, 1961