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How to claim TDS deducted U/S 194LA

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Vijay Shekhar

5 Points Posted on 09 August 2020

I received compensation against land acquired by the NHAI and tds was deducted U/S 194LA.
Kindly help me in the matter and please suggest measure as how to claim the TDS?
Thanks.

Replies (5)

Quick Summary

If TDS was deducted under Section 194LA on compensation received for land acquired by NHAI, you can claim this back by filing your income tax return. While compensation for compulsory acquisition of agricultural land is exempt under Section 10(37), other property acquisitions are taxable under Capital Gains. You may be able to claim an exemption by reinvesting the compensation as per the Act's provisions. The correct ITR form depends on your other income sources.

Sagar Patel

Tax and Business Consultant

11616 Points Posted on 09 August 2020

To claim the Refund of TDS you are required to file the income tax return. In income tax return you can claim your TDS. Refund will be granted after adjusting tax liability, if any.

Vijay Shekhar

5 Points Posted on 09 August 2020

Basically I want to know whether the compensation allowed by the Government for Compulsory Aquisition of property is exempt or not and if it is exempted, then which ITR to be filed and where to show such receipt in ITR..?
thanks

Sagar Patel

Tax and Business Consultant

11616 Points Posted on 09 August 2020

Capital gains arising on compulsory acquisition of agricultural land is exempt under section 10(37).

But as your compulsorily aquired property is not a agriculture land, So, it's taxable under head Capital Gain.

You can claim Exemption by investing amount as per provision of act in specified assets.

Which ITR required to be filed is depends on your other income like if you have any salary income, rent income, business Income, interest income ect.

Vijay Shekhar

5 Points Posted on 10 August 2020

Kindly some one please suggest if the compensation received against compulsory land acquisition and tds deducted u/s 194LA, is exempt from income tax. And please suggest if Section 96 of RFCTLARR Act 2013 is applicable in my case above? Please also reffer IT Circular No. 36/2016 dt. 25.08.2016.
Thanks