INCOME TAX ACT, 1961

Section 194

Tax deduction at source under section 194 - Compensation payable for acquisition of Land - Non deduction of tax at source -

Issue arose under consideration as to whether compensation payable for acquisition of land under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 was amenable to income tax and if so whether at the time of payment of compensation there was a requirement for deduction of Tax at Source (TDS). Held: The compensation having been determined to be paid to each of assessee under the 2013 Act was not liable for deduction of Income Tax, much less TDS. A direction was issued to refund to assessee the TDS amount deducted on or before 31-5-2019 together with simple interest at 6% p.a. from the date of deduction of the TDS amount till the date of payment, which should not be later than 31-5-2019. If refund was delayed beyond that period simple interest at 9% p.a. will be paid by CALA on the said sum for the period of delay.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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