My client has received compensation under section 194la. It is received under the fair compensation and REB Act 2013. Is it taxable or exempted under head of capital gain? Is it long term capital gain? Any notification regarding this which give us any idea to save capital gain 20%.

Reply— As per Section 45(5) of Income Tax Act, where the gain arises from the transfer of a capital asset, being a transfer by way of compulsory acquisition under any law, it will be taxable under the head 'capital gain'.

Refer Section 54D of Income tax act which deals with capital gain on compulsory acquisition of lands and buildings not to be charged in certain cases. If you are not covered under section 54D, it will be taxable under capital gain.