Whether Tds

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This discussion clarifies whether Tax Deducted at Source (TDS) applies when a tenant receives compensation for surrendering their tenancy rights. While TDS may not be directly applicable, the compensation is taxable as income from other sources or capital gains. The thread also explores TDS rates for super senior citizens and options for investing tax amounts in government bonds, particularly under Section 54EC for long-term capital gains.

SUBRAMANIAN VENKATRAMAN

SUBRAMANIAN VENKATRAMAN (Querist)
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21 June 2024 Question 1. Is TDS applicable on amount received as compensation by a tenant on surrender of his tenancy rights?
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Ans> TDS not attracted but the income will taxable under the Head Income from other.

Question 2. Please clarify if the income is taxable what will be tds rate in case of super senior citizen and whether he can invest entire tax amount in some Government bonds tax saving bonds OR is there any threshold limit .
Suppose assume if Mr.A receives compensation of say Rs.20,00,000/- what will be his tds liability and how much he can invest in Govt.bonds.
Please advise.