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query regarding 194LA

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bhavik (Querist)
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01 June 2010 i have 1 query regarding 194 LA can u plz. help me out ?

tds on what amount to be deducted in following case ?

suppose , compulsory acquisition on 1/12/09 ; total comepentation in dat regard is rs. 25 lac

if such payment is made in two or more parts ..
i.e. suppose , paid on 1/12/09 75000/- balance on 1/12/10 24.25 lac /- then on 24.25 lac tds is only to be made in 10-11

; no tds to be made on 75000 ?(in section it's given tds is to be made only if in p.y. payment exceeds 1 lac)

according to me compensation already decided 25 lac .. it's paympent in portion is just postponmet of payment so, accord to me tds should be on 25 lac on total amount ....

plz. reply ( any judgment in that regard )

thanks in advance

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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01 June 2010 194LA is to be enforced on payment basis. In financial year 2009-10, payment made is Rs.75,000/-. No need to deduct tax on that payment. In financial year 2010-11, Payment made is Rs.24.25 Lakhs. Income tax has to be deducted, as per my understanding, on Rs.24.25 lakhs only in financial year 2010-11.

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