682/CBDT. - Income Tax - 682/CBDT

INSTRUCTION NO. 682/CBDT Dated : April 15, 1974 Instructions on the valuation of the right to receive compensation on abolition of Zamindari estates were issued in Circular No.2D (WT) of 1964 dated 15.5.64. It is now settled law that the right to receive compensation on acquisition of land by the State is an asset, the value of which is includible in net wealth of the person who is entitled to the compensation. Apart from cases of acquisition of Zamindari estates, there will be several cases of acquisition of lands in each State. It is necessary to maintain liasion with the State authorities to find out the cases in which lands have been acquired and take steps to include the value of the right to compensation in the net wealth of the person entitled to the compensation; or, if the person concerned is not already assessed to Wealth-tax, to ascertain whether he would become assessable to Wealth-tax. The Board desire that you may make arrangements in your charge for periodically collecting information from the State authorities regarding the cases of land acquisition and compensation payable. Such information may be collected either annually or once every six months. 2. The Board may please be informed of the arrangements made by you in this regard in due course.