Muhammad Akmal owned 2 hectares of agriculture land located in Kuala Berang, Terengganu which he bought in 2018. He intended to build 4 bungalows for each of his son and use the area as family resort. However, in 1 July 2019 he received a piece of letter from Terengganu state government informing him that his land is included under development area. He at first refused to obey with the order but finally agrees. On 1 May 2020 he received RM2.5 million from the government as compensation from the compulsory disposal of the land.

Required

State with reasons, whether the RM2.5 million compensation received by Muhammad Akmal is taxable under Income Tax Act 1967 by using any FOUR (4) badges of trade.

a)Not taxable period of ownership, alteration to the property, profit seeking motives, circumstances surrounding realization, methods employed in disposing

b)Taxable period of ownership, alteration to the property, accounting evidence

c)Taxable period of ownership, alteration to the property, profit seeking motives, circumstances surrounding realization