Withholding tax on compensation for compulsory acquisition: payers must deduct tax at source unless payments fall below the exemption threshold. The provision requires payers to deduct ten per cent. as income-tax at the time of payment of any compensation, enhanced compensation, consideration or enhanced consideration paid to a resident on account of compulsory acquisition of a capital asset, by cash, cheque, draft or any other mode. No deduction is required where a single payment or the aggregate payments to the resident in a financial year do not exceed one hundred thousand rupees. The section took effect from 1 June 1999.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Withholding tax on compensation for compulsory acquisition: payers must deduct tax at source unless payments fall below the exemption threshold.
The provision requires payers to deduct ten per cent. as income-tax at the time of payment of any compensation, enhanced compensation, consideration or enhanced consideration paid to a resident on account of compulsory acquisition of a capital asset, by cash, cheque, draft or any other mode. No deduction is required where a single payment or the aggregate payments to the resident in a financial year do not exceed one hundred thousand rupees. The section took effect from 1 June 1999.
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