https://www.taxtmi.com/caselaws?id=339409 Development authority constituted through State appointments and notified as an industrial township lacks the elected self-governing character required of a municipality, and therefore does not qualify for the claimed income-tax exemption as a municipality or local authority. Instalments of lease premium paid to acquire long-term leasehold rights are capital payments and are not subject to tax deduction at source, while recurring annual lease rent is rent subject to withholding. Interest payable to the development authority, including interest on delayed lease-premium payments and bank deposits, falls within the applicable withholding exemption. Withholding is consequently confined to recurring annual lease rent, with excess collections to be credited or reimbursed after hearing affected persons. en-us Thu, 16 Feb 2017 00:00:00 +0530 Tue, 22 Sep 2026 11:43:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=339409 Development authority constituted through State appointments and notified as an industrial township lacks the elected self-governing character required of a municipality, and therefore does not qualify for the claimed income-tax exemption as a municipality or local authority. Instalments of lease premium paid to acquire long-term leasehold rights are capital payments and are not subject to tax deduction at source, while recurring annual lease rent is rent subject to withholding. Interest payable to the development authority, including interest on delayed lease-premium payments and bank deposits, falls within the applicable withholding exemption. Withholding is consequently confined to recurring annual lease rent, with excess collections to be credited or reimbursed after hearing affected persons. Case-Laws Income Tax Thu, 16 Feb 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=339409