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Compensation amount by nhai is taxable or not
Question
Nhai is going to give is compensation for acquiring our residential building along with plot.
Kindly tell if that amount taxable or not. Some people told me only compensation for land will not taxable but compensation for building taxable.
Answer ( 1 )
The amount which will be disbursed would be taxable qua the structure built on the land. otherwise earlier as per law, tax on capital gain was to be paid however recently Patna ITAT clarified that the same is exempt from tax liability