Manoj Tayade (CA Student) (69 Points)
22 August 2016
Manoj Tayade
(CA Student)
(69 Points)
Replied 23 August 2016
owner is got the land by born from his father.
anil jain
(Partner)
(1072 Points)
Replied 24 August 2016
in my opinion, there is no provision in Income Tax Act to make TDS on payment of sale consideration for transfer/compulsory acquisition of agricultural land. Thus TDS @ 10% implies that either the land is not agricultural or the TDS is on payment of interest for delayed payment of compensation.
If the land is agricultural, the same is not capital asset under the provisions of Income Tax Act hence no capital gain and not warrant to be shown as such rather as exempt receipt.
If it is TDS on payment of interest for delayed payment of compensation, shos in return accordingly.
OR
If it is non agricultural land, compute capital gain by taking the value as on 01.04.1981 ( per valuation by valuer) (assuming the land was acquired by father/ancestor before 01.04.1981) then go for indexation and also consider other exps for sale.
anil jain
(Partner)
(1072 Points)
Replied 24 August 2016
in my opinion, there is no provision in Income Tax Act to make TDS on payment of sale consideration for transfer/compulsory acquisition of agricultural land. Thus TDS @ 10% implies that either the land is not agricultural or the TDS is on payment of interest for delayed payment of compensation.
If the land is agricultural, the same is not capital asset under the provisions of Income Tax Act hence no capital gain and not warrant to be shown as such rather as exempt receipt.
If it is TDS on payment of interest for delayed payment of compensation, shos in return accordingly.
OR
If it is non agricultural land, compute capital gain by taking the value as on 01.04.1981 ( per valuation by valuer) (assuming the land was acquired by father/ancestor before 01.04.1981) then go for indexation and also consider other exps for sale.
Manoj Tayade
(CA Student)
(69 Points)
Replied 25 August 2016
thank you sir, now I want to tell you in detail
1) An Individual farmer living in village of India
2) He received compansation from GOVERNMENT by the way of compulsory acquisition of his AGRICULTURE LAND situated in RURAL area.
3) GOVERMENT deducted TDS on it @ 10%. already and provide form 16-A.
its my question that , above case is applicable for tax ,
If not then what is the procedure to file ITR for refund???????
CAclubindia
