Query about TDS Refund of 194LA

Nikhil Jadhav (Learner) (30 Points)

17 February 2020  
Dear Sir,
I am salaried person and filed my ITR for AY 2017-18 on 16/07/2017 and claimed TDS of Rs. 1150/-(TDS u/s 192). However after filing my return I found TDS of Rs. 70720/- (TDS u/s 193). The said TDS was deducted by govt. office on compensation on compulsory agriculture land acquisition. On 15/06/2018 I filed revised return for AY 2017-18 for claiming of TDS of Rs. 70720/-. Further I received communication from CPC Bengaluru regarding proposed adjustment u/s 143(1)(a) which states that “There is inconsistency between other source income in return and Form 26AS”.
To said proposed adjustment I replied that “The receipt is Rs. 707200/- interest on enhanced compensation for compulsory land acquisition by govt. for irrigation purpose” but actually the said amount is a compensation for compulsory acquisition of agriculture land by govt. & not an interest. Further, I received intimation u/s 143(1) in which they send demand notice instead of refund of TDS.
After receiving the demand notice I send letter to concerned govt. office who deducted the TDS of Rs. 70720/- and requested them to change the section of TDS from 193 to 194LA because the amount received from that office is actually a compensation for compulsory acquisition of agriculture land by govt. & not an interest. The govt. office changed section of TDS as 194LA.
Now my question is how to claim refund of TDS of Rs. 70720/- deducted u/s 194LA. Should I file revised return or should I send rectification request, please guide.