section 194LA of Income tax act 1961- TDS on Payment of compensation on compulsary acquisition of immovable property.

This article briefly covers about Important provisions of 

SECTION 194LA of Income tax act 1961 - TDS on Payment of compensation on compulsary acquisition of immovable property.  

Section: 194LA

Payer: Any person

Payee: Any Resident Person

Nature of Payment: 

Compensation or the enhanced compensation or the consideration or the enhanced consideration on account of compulsory acquisition, under any law for the time being in force, of any immovable property (other than agricultural land).

TDS Rate: 10%

Note:

• No TDS if consideration is upto Rs 2,50,000 p.a.
• No TDS where such payment is made in respect of any award or agreement which has been exempted from levy of income-tax under section 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (30 of 2013)

Timing of Deduction:

At the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier.

SEC 194LB of Income tax act 1961 - TDS on Payment of Income by way of interest from an infrastructure debt fund.

Sec: 194LB.

Payer: Infrastructure debt fund referred to section 10(47)

Payee: Non-resident (or) Foreign Company

Nature of Payment: Interest on Infrastructure debt fund

TDS Rate: 5%

Timing of Deduction: At the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier.

Source-https://www.incometaxindia.gov.in/

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