Is Tax Payable on Annuity
The Government had acquired my agricultural land and paid compensation for it . It is also paying an annuity . can i take this annuity payment as agricultural income ? or will it be treated as defered payment against acquired Land ? or will it be treated as income from other sources and taxed in the year of receipt ?
Tandon firstname.lastname@example.org more
If the agricultural land is rural agricultural land then tax liability is NIL. more
i think we, have to study under what act land has taken & any benefits under IT ACT for annuity paid etc.. more
Matter is not so simple when government acquires land the money paid is by ways of compensation and compensation are not income, they are a payment in lieu of snatching your means for livelihood. I think these are totally exempted from income tax as may be given by a special notice of acquisition, refer those documents and act. more
It will fall under the head of "Income from Other Sources" and added with total income more
Annuity income is income from other sources. more