applicability of TDS

[Guest]

Dear sir,

We are paying huge amounts for compulosry aquisition of private properties for road widening as compensation.

I would like to know the applicability of TDS under income tax for the above payments and the rule position and the rate of income tax for such payments.

thanking you sir

chakravarthy

[Ankur Agrawal]

Dear sir,

you are covered under Sec 194L, under which, in case of cumpulsory acquition, if amount of compensation exceeds Rs. 100000, payer needs to deduct TDS at the specified rate. i advice to please refer the this particular section to get clearity regarding your doubt.

 

AI Summary

TDS on compulsory acquisition compensation requires the payer to deduct tax where the compensation exceeds the statutory threshold. Compensation for compulsory acquisition of private property is subject to a TDS obligation: if the compensation exceeds the statutory threshold under the relevant TDS provision, the payer must withhold tax at the prescribed rate. The payer is the deductor and should consult the specific provision for threshold, rate, and compliance requirements.