Interest on compensation
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
27 February 2014
hello frns,
A client has come to us with TDS certificates stating that he has got interest on the compensation payable by the Government on Compulsory land acquisition of Agriculture land for the A.Y. 2013-14. We know that we have to tax the interest on accrual basis. But before that he was came under 10% slab rate but due to Interest on compensation he is coming under 30% slab rate and TDS deduct @10% u/s 194A. So, anyone help me and reply what will be the tax treatment?
A client has come to us with TDS certificates stating that he has got interest on the compensation payable by the Government on Compulsory land acquisition of Agriculture land for the A.Y. 2013-14. We know that we have to tax the interest on accrual basis. But before that he was came under 10% slab rate but due to Interest on compensation he is coming under 30% slab rate and TDS deduct @10% u/s 194A. So, anyone help me and reply what will be the tax treatment?
27 February 2014
no compensation is taxable on receipt basis and for that refer sec 56(2) and sec 57.
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