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TDS

Manoj Tayade (CA Student) (69 Points)

25 August 2016

Hello there, Please guide me in following case. 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???????

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10 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195763 Points)
Replied 25 August 2016

1. TDs is applicable, but tax liability NIL for agricultural land.

2. Simply file ITR for the corresponding year; if TDS is more than tax liability, refund will be automatically processed.

Manoj Tayade (CA Student) (69 Points)
Replied 25 August 2016

should I claim for TDS refund? and what is percentage of TDS deduction??

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195763 Points)
Replied 25 August 2016

Tds has already been deducted by Government, and paid the amount after deduction of 10%.

You just file ITR, check tax liability, fill in the TDS deducted details, the utility itself will calculate the amount of refund payable.

Manoj Tayade (CA Student) (69 Points)
Replied 25 August 2016

there is no other income source rather than nominal agriculture income and compensation.

Manoj Tayade (CA Student) (69 Points)
Replied 25 August 2016

Sir I got may answers that says TDS is not deductible in transfer/compulsory aquisition of Agriculture Rural Land

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195763 Points)
Replied 25 August 2016

So, whatever it may be, you can show agricultural income as exempt income. and the capital gains of the compulsory aquisition of the Rural agriculture land also as exempt income.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195763 Points)
Replied 25 August 2016

"Sir I got may answers that says TDS is not deductible in transfer/compulsory aquisition of Agriculture Rural Land"

Yes, I too agree, but can you challange Government for deducting TDS?

Go ahead. I prefer to go for refund rather than challeging the district administration.

Manoj Tayade (CA Student) (69 Points)
Replied 25 August 2016

ok sir thanks a lot.

Terry (ceo) (59 Points)
Replied 25 August 2016

Dhirajlal has correctly advised you on various issues as TDS would be deducted and you can claim refund as the income will not be taxable. However The land has to be used for more than three years for agricuultural purposes. You can have a look at this judgment to understand this aspect

https://www.itrtoday.com/no-capital-gains-tax-exemption-under-section-1037-if-no-agriculture-activity-carried-out/