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 Applicability on Compensation for Property Acquisition Explained Under Section 194L of Income Tax Act A query was raised regarding the applicability of Tax Deducted at Source (TDS) on compensation payments for the compulsory acquisition of private properties for road widening. The inquirer sought clarification on the relevant income tax rules and rates. The response indicated that such payments fall under Section 194L of the Income Tax Act. It was explained that if the compensation exceeds Rs. 100,000, TDS must be deducted at the specified rate. The responder advised consulting this section for further clarity on the matter.