TDS U/S 194LA UNDER INCOME TAX ACT

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raghavendra b (Querist)
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10 August 2021 DEAR SIR,

COMPENSATION RECEIVED FROM COMPULSORY ACQUISITIO OF IMMOVEBALE PROPERY TDS U/S 194LA IS
TAXABLE OR NON TAXABLE CAN WE CLAIM TDS DEDUCTED U/S 194LA, IS EXEMPTED FROM INCOME TAX

REGARDS

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 August 2021 If the settlement is done under the following Act, then no tax payable. See the settlement document.
Otherwise tax payable.
The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013’, shortly known as RFCTLARR Act, which came into effect from January 1, 2014,

raghavendra b

raghavendra b (Querist)
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10 August 2021 DEAR SIR,

TDS DEDUCTED BY SPECIAL LAND AQUISTION AND COMPETENT AUTHORITY NATIONAL HIGHWAY , MORE THAN 100 YEAR OLD HOUSE ACQUIRED AS PER THE RULES.

IS COMPENSATION RECEIVED BY COMPULSORY ACQUISITION IS NON TAXABLE

REGARDS

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 August 2021 Cases, wherein, TDS is not to be deducted under section 194LA
TDS is not deductible under section 194LA in following cases –

When the person is paying an amount to a ‘non-resident’ person.
When the aggregate consideration during the Financial Year is less than INR 2,50,000.
When the payment is made in respect of any award / agreement which is exempted from income tax under section 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
When the payee has filed an application in Form No. 13 to the Assessing Officer and has obtained a certificate for No / lower deduct of tax.

TDS deducted in your case not falling under RFCTLARR hence it's taxable.

raghavendra b

raghavendra b (Querist)
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10 August 2021 DEAR SIR,

HIS OLD HOUSE SITUATED IN VILLAGE AREA, THE BUILTED IN AGRICULTURAL LAND. SO IN THIS CASE HOW TO DETERMINE WHETHER IS IMMOVEMABLE HOUSE PROPERTY OR AGRICULTURAL LAND

REGARDS

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 August 2021 Mostly TDS might have been wrongly deducted. Checkup with acquisition authorities whether the settlement is as per the
Above referred Act. Mostly such settlement is under the act only which is exempt from income tax.

In case of the house is situated in the vicinity of agricultural land then it is considered as agricultural land acquisition exempt from income tax.

raghavendra b

raghavendra b (Querist)
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10 August 2021 DEAR SIR,

THANK YOU FOR YOUR REPLIES, I HAVE RECEIVED DOCUMENTS REGARDING THE IN THIS CASE, COMPENSATION HAS BEEN PAID AS PER RFCTLARR ACT 2013, SHEDULE 1. IS CLEARLY MENTIONED IN THE FINAL AWREDED NOTICE.

BECAUSE HOUSES ARE NOT COMES UNDER MUNICIPALITY ITS COMES UNDER PANCHAYT AUTHORITY.

REGARDS

raghavendra b

raghavendra b (Querist)
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10 August 2021 DEAR SIR,

IF ITS NON TAXABLE INCOME IN WHICH HEAD TO BE SHOWN MAY BE INCOME FROM OTHER SOURCES OR EXEMPT INCOME.

REGARDS AND THANK YOU SIR

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 August 2021 Show it under exempt income.

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