Land acquisition compensation: taxable or exempt? Part-by-part answer, TDS refund route & CA note

Who received it?

How was the land taken?

What was the land?

Year you were paid

From the payment advice

Compensation paid (with solatium and the 12% extra), ₹

Interest for late payment, ₹

0 if the advice shows none.

TDS cut on the compensation (26AS / Form 16A), ₹

Default 0.

Where the land is (High Court)

Where is the land?

Default Chhattisgarh — this tool's home state. The High Court of the state decides which rulings bind your tax officer.

Is the land rural? Check the distance

Is it inside a town's municipal or cantonment limits?

Population of the nearest town (last census)

Straight-line distance from the town's limits (km)

Type the aerial distance in km — e.g. 7.5

More parts of the payment

Extra compensation a court or arbitrator added, ₹

Default 0.

Interest the court added on that extra, ₹

Default 0.

TDS cut on the interest, ₹

Default 0.

Your return for that year

Default "Filed — showed it as taxable or left it out".

Date you received the tax department's intimation or order (leave blank if none)

Client & letterhead for the note

Client name PAN Paid by Award no. & date Village / khasra

Your letterhead — saved on this device for every note.

Firm name Line under the name Address Phone / email FRN CA name Partner / Proprietor M.No. Place

Who received it?

Year the interest was paid to you

From the award or payment advice

Interest up to the award, ₹

From the claim petition to the award (or the appeal judgment).

Interest for the insurer's delay after the award, ₹

0 if paid on time.

TDS the insurer cut on the interest (26AS / Form 16A), ₹

Default 0.

Your state's High Court

Which state's High Court covers you?

Default Chhattisgarh — this tool's home state. Your High Court decides which rulings bind your tax officer.

Work out the split from the award

Amount awarded, ₹ Interest rate, % a year

9 — the rate most tribunals award; change it to the award's.

Claim petition date

Award date

Date paid

Tribunals sometimes leave some heads out of the interest — check the award.

Fixed deposit interest

Bank interest this year on a deposit the tribunal ordered, ₹

Default 0.

The deposit is in a minor child's name

If you already filed or got an order

Your return for that year

Default "Not filed".

Date you received the tax department's intimation or order (leave blank if none)

More about the award

Part of the award is still in a deposit because the insurer has appealed

Client and letterhead

Client name PAN Tribunal & claim no. Insurer

Your answer

Each part of your payment

Part	Amount	Position	Why	How to show it in the return

Your TDS and the refund door

Farm income questions? → Agri income credibility pack
Land in CG being diverted? → CG land diversion navigator
Notice or refund to chase? Karan's firm handles ITAT Raipur matters → cakarangupta.com

How this works

Each part of the payment gets one of five positions: not income at all (village farm land is not a capital asset — section 2(14)(iii) of the 1961 Act, section 2(22)(iii) of the 2025 Act); exempt by the Income-tax law (section 10(37) for farmed urban land; Schedule III entry 38C from FY 2026-27 for awards under the 2013 land Act); exempt under the land Act (section 96 of the 2013 Act with CBDT Circular 36/2016, extended to highway awards by the Chhattisgarh High Court in Sanjay Kumar Baid); a taxable capital gain; or taxable interest with half deducted.

Interest for late payment is taxed as interest with a 50% deduction unless the compensation is exempt under the land Act and your High Court treats it as part of the compensation. Court-added interest on an enhancement follows the compensation (Supreme Court, Ghanshyam), except in Punjab & Haryana.

TDS under section 194LA (section 393 of the 2025 Act) does not apply to farm land or exempt awards; the limit is ₹2,50,000 for payments to 31 Mar 2025 and ₹5,00,000 after. The refund route is the first open door: belated or revised return, appeal within 30 days, revision under section 264 within a year, then condonation under section 119(2)(b) and CBDT Circular 11/2024 up to five years after the assessment year. An updated return can never raise a refund, so it is never offered.

The tool does not compute the capital gain or the tax, and it does not draft the condonation application.