TDS Compensation under Land Acquisition Rehabilitation and Resettlement Act, on NonAgricultural Land—Whether Liable for TDS under Section 194LA

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The Tax Publishers Income Tax--TDS Compensation under Land Acquisition Rehabilitation and Resettlement Act, on Non-Agricultural Land--Whether Liable for TDS under Section 194LA CA. Nisha Bhandari Section 194LA deals with TDS on payment of compensation on acquisition of certain immovable property. The second proviso to section 194LA provides that no tax is required to be deducted where payment is made in respect of any award or agreement which has been exempted from the levy of income-tax under section 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The present article clarifies with help of a case law that such exemption shall be available whether land is agricultural or non-agricultural. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Income Tax--TDS

Compensation under Land Acquisition Rehabilitation and Resettlement Act, on Non-Agricultural Land--Whether Liable for TDS under Section 194LA

CA. Nisha Bhandari

Section 194LA deals with TDS on payment of compensation on acquisition of certain immovable property. The second proviso to section 194LA provides that no tax is required to be deducted where payment is made in respect of any award or agreement which has been exempted from the levy of income-tax under section 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The present article clarifies with help of a case law that such exemption shall be available whether land is agricultural or non-agricultural.