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TDS

Radhakrishnan (Service) (47 Points)

26 February 2008

Land is acquired by Government. Affected party moves Court for enhanced compensation. Court directs Government to deposit the money in Court, till the disposal of the appeal. who should deduct tds? relevant sections and case laws please.

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2 Replies

S.Srinivasaraghavan (Chief Financial Officer and Co) (11318 Points)
Replied 26 February 2008

The tax deduction requirement will be triggered only when the enhanced compensation becomes payable and obviously it is the payer of compensation who is responsible. Section 194LA

Vijay (CA) (254 Points)
Replied 26 February 2008

If compensation is more then 1 lac then TDS is liable @ 10% (plus surcharges and education cess as applicable) under section 194LA of IT Act. Since government has deposited monet to court and if credited account of payee then TDS is deductible at that time only.