TDS SECTION 194LA

[shamji bhanushali]

my client is individual and he has purchased land in 1980 in personal name. he has made valuation in the year 2013 value of land AS ON dated APRIL 2007 by government valuear value of Rs. 5.24 crores. after valuation of land he has transfer his land in his firms name where he is partner by journal entry passed in books value of ₹ 5.24 cr. he has paid capital gains in his personal income tax return. original land cost of Rs. 347000 lakhs and he has paid sum of ₹ 1.54 crore to encroachment i.e. unauthorized hut. this payment made in year 2014-15 and same was paid by firm on behalf of partners . firm has debited in personal account. firm has not claimed any expenses. firm has claimed only purchases cost of Rs. 5.24 cr. amount of ₹ 1.54 which paid to unauthorised encrochment paid without deduction of TDS. because firm has debited this amount on personal name and he has claimed that expenses in his capital gain. now my question is that individual can make compensasion without tds ? is firm responsible for this when firm has claimed cost of land ₹ 5.24 in firms pl account? reply.

AI Summary

Land Transfer to Firm at 5.24 Crores Raises TDS Questions on 1.54 Crore Encroachment Payment An individual purchased land in 1980 and valued it at 5.24 crores in 2007. He transferred the land to his firm, where he is a partner, and recorded it at the same value. The individual paid capital gains tax on this transaction. Additionally, 1.54 crore was paid to remove unauthorized encroachments, which the firm paid on behalf of the partners without deducting TDS. The firm recorded the land cost as 5.24 crores in its accounts. The query seeks clarification on whether the individual can make such a compensation payment without TDS and the firm's responsibility regarding this transaction.