Need clarification on getting the TDS amount obtained compensation from national highway authority

HELLO TO ALL,

VERY RECENTLY I HAD RECEIVED YHE SUM OF UPTO 1 CRORE FROM THE NATIONAL HIGHWAY AUTHORITY IN THE NATIONAL HIGHWAY NUMBER 275 MY AREA COMES UNDER THE RURAL LIMITS AND IT IS ORIGINATED AND HAD BEEN MADE IN THE VILLAGE PANCHAYAT AS I HAVE RECEIVE THE SUM FROM THE NATIONAL HIGHWAY AUTHORITY THE NATIONAL HIGHWAY AUTHORITY HAD BEEN CALCULATED THE TDS AMOUNT AND DEDUCTED FROM THE SOURCE. THOUGH THE COMPENSATION AMOUNT RECEIVED IN THE YEAR 2017. I DID RECEIVED THE TDS FORM NUMBER 16 IN THE YEAR 2018 SINCE THEN I HAD NOT APPLIED FOR THE CLAIM ON MY TDS CERTIFICATE. MY QUESTION IS...

IS IT POSSIBLE TO RECLAIM MY TDS AMOUNT IN THE CURRENT FINANCIAL YEAR OR THE NEXT YEAR
MY AUDITOR HAD CALCULATED THE RECEIVED SUM OF 80 LACS AND BEEN ADVANCED TO PAY THE CAPITAL GAIN TAX TO THE INCOME TAX DEPARTMENT. IS IT OK A OF THE THE CAPITAL GAIN TAX THAT I HAVE PAID TO THE DEPARTMENT.

FOLLOWING ATTACHMENT ARE THE TDS CERTIFICATE, AUDITOR OPINION AND THE REWARD NOTICE GIVEN TO ME. MANY THANKS FOR YOUR PATIENCE FOR HEARING ALL THIS.. KINDLY HELP ME TO GET SOME RELIEF...

VIJAI KIRTHI

Attached File : 1331912 20210126141213 tds.pdf downloaded: 37 times

Hey Vijai! Here’s some clarity on your TDS and compensation situation:

1. Reclaiming TDS now (for older TDS certificates):

Yes, you can claim refund of TDS deducted even if it relates to earlier years.
The TDS was deducted in FY 2017-18 and certificate received in 2018.
If you did not claim TDS credit earlier, you can still claim the credit/refund by filing your Income Tax Return (ITR) for the relevant assessment year.
If you have already filed returns without claiming the TDS, you can file a revised return for that year.
The refund (if any) will be processed after verification by the Income Tax Department.

2. Capital Gains tax payment on compensation received:

If your auditor has correctly computed the capital gains on the compensation amount (₹80 lakhs in your case) and you have paid the tax on it, that is the proper course of action.
Usually, compensation from government authorities for land acquisition is considered capital gains income.
You are liable to pay tax on the net capital gain, which is the difference between compensation received and indexed cost of acquisition.
Payment of capital gains tax on this amount is correct and necessary.

Summary & suggestions:

Make sure you file your Income Tax Return for the AY in which you got the compensation and TDS certificate, claiming TDS credit properly.
If you missed that, file a revised return or rectification.
If you have paid tax on capital gains, ensure that it is reflected in your return.
Keep all documents (TDS certificate, compensation award, auditor’s report) handy to support your claim.