Tax Treatment on Compulsory Land Acquisition: Rules & Exemptions

The Income-tax Act, 1961, as amended by the Finance Act, 2026, prescribes special rules for taxation of capital gains arising from compulsory acquisition of land and other capital assets by the Government. Capital gains become taxable in the year of receipt of initial compensation, while enhanced compensation is taxed separately on a receipt basis without recomputing the original gain. Website URL: https://taxguru.in/income-tax/tax-treatment-compulsory-land-acquisition-rules-exemptions.html