Income tax notice (immovable property)
This query is : Resolved
Jaswinder singh
(Querist)
28 November 2017
Sir/madam,
a person received a notice from income tax dept. for non-filing of income tax return because of a property suddenly acquired by govt. and deduct TDS u/s 194A @10% (5,34,712/-) on amount 53,47,116/- in three financial years.
My question is that TDS section 194A is to be correct or not? My opinion is Section 194IA (1%) is to be correct. and also assessee owns that land in rural area and his opinion that it is agriculture land exempt from tax but govt deduct Tds u/s 194A (10%)?
and last date to submit online response is 30-11-2017
So how can i deal with this situation....................
a person received a notice from income tax dept. for non-filing of income tax return because of a property suddenly acquired by govt. and deduct TDS u/s 194A @10% (5,34,712/-) on amount 53,47,116/- in three financial years.
My question is that TDS section 194A is to be correct or not? My opinion is Section 194IA (1%) is to be correct. and also assessee owns that land in rural area and his opinion that it is agriculture land exempt from tax but govt deduct Tds u/s 194A (10%)?
and last date to submit online response is 30-11-2017
So how can i deal with this situation....................
CA R SEETHARAMAN
(Expert)
28 November 2017
Rural agricultural land is exempt from tax. TDS u/S 194A might have been rightly deducted on interest for delayed payment.
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Jaswinder singh
(Querist)
28 November 2017
okk sir
but TDS deducted on whole amount which assessee received from sale of land @ 10% and how i disclose income u/s 194A in ITR in response to notice?
but TDS deducted on whole amount which assessee received from sale of land @ 10% and how i disclose income u/s 194A in ITR in response to notice?
CA R SEETHARAMAN
(Expert)
28 November 2017
See the link interest will be exempt treating it as part of land cost as per Supreme court decision.
https://taxguru.in/income-tax/taxability-chaotic-interest-incomes-acquisition-land.html
https://taxguru.in/income-tax/taxability-chaotic-interest-incomes-acquisition-land.html
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CA R SEETHARAMAN
(Expert)
28 November 2017
Reply to the notice TDS wrongly deducted on exempt income. Interest included in this payment is below taxable limit hence no ITR filed.
File condonation application with CIT and file return for claiming TDS refund.
File condonation application with CIT and file return for claiming TDS refund.
Message likes :
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Jaswinder singh
(Querist)
28 November 2017
thank your so much sir for your valuable reply.............
CA R SEETHARAMAN
(Expert)
29 November 2017
You are welcome....................
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