TDS on compensation for compulsory acquisition: threshold raised, reducing instances where tax must be deducted at source. The amendment raises the exemption threshold under section 194LA so that no deduction is required where a single payment or the aggregate of such payments to a resident in a financial year does not exceed five lakh rupees; the provision otherwise requires a payer to deduct tax at the time of payment of compensation or consideration on account of compulsory acquisition at the rate of ten per cent. The change takes effect from 1 April 2025.
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TDS on compensation for compulsory acquisition: threshold raised, reducing instances where tax must be deducted at source.
The amendment raises the exemption threshold under section 194LA so that no deduction is required where a single payment or the aggregate of such payments to a resident in a financial year does not exceed five lakh rupees; the provision otherwise requires a payer to deduct tax at the time of payment of compensation or consideration on account of compulsory acquisition at the rate of ten per cent. The change takes effect from 1 April 2025.
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