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What is Payment of compensation on acquisition of capital asset? What is Payment of compensation on acquisition of certain immovable property? Section 194 L and 194 LA of Income Tax Act 1961

Payment of compensation on acquisition of capital asset and Payment of compensation on acquisition of certain immovable property are defined under section 194 L and 194LA of Income Tax Act 1961. Provisions under these Sections are :

Section 194L of Income Tax Act "Payment of compensation on acquisition of capital asset"

Section 194L. Any person responsible for paying to a resident any sum being in the nature of 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 capital asset shall, 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, deduct an amount equal to ten per cent of such sum as income-tax on income comprised therein :

 

Provided that no deduction shall be made under this section where the amount of such payment or, as the case may be, the aggregate amount of such payments to a resident during the financial year does not exceed one hundred thousand rupees:
Provided further that no deduction shall be made under this section from any payment made on or after the 1st day of June, 2000.

Section 194LA of Income Tax Act "Payment of compensation on acquisition of certain immovable property"

Section 194LA. Any person responsible for paying to a resident any sum, being in the nature of 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), shall, 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, deduct an amount equal to ten per cent of such sum as income-tax thereon:

Provided that no deduction shall be made under this section where the amount of such payment or, as the case may be, the aggregate amount of such payments to a resident during the financial year does not exceed two hundred thousand rupees.

Explanation.-For the purposes of this section,-

(i) "agricultural land" means agricultural land in India including land situate in any area referred to in items

(a) and (b) of sub-clause (iii) of clause (14) of section 2;

(ii) "immovable property" means any land (other than agricultural land) or any building or part of a building.

Income Tax Act 1961

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What is Income in respect of units? Section 194 K of Income Tax Act 1961

What is Payment of compensation on acquisition of capital asset? What is Payment of compensation on acquisition of certain immovable property? Section 194 L and 194 LA of Income Tax Act 1961

What is Income by way of interest from infrastructure debt fund? What is the treatment of Certain income from units of a business trust? Section 194LB and 194 LBA of Income Tax Act 1961

What is Income in respect of units of investment fund? What is Income by way of interest from Indian company? Section 194LBB and 194 LC of Income Tax Act 1961

What is Income by way of interest on certain bonds and Government securities? What is Other sums? Section 194LD and 195 of Income Tax Act 1961

What is Income payable net of tax? What is Interest or dividend or other sums payable to Government, Reserve Bank or certain corporations? Section 195A and 196 of Income Tax Act 1961

What is Income in respect of units of non-residents? What is Income from units? Section 196A and 196B of Income Tax Act 1961

What is Income from foreign currency bonds or shares of Indian company Income of Foreign Institutional Investors from securities? Section 196C and 196D of Income Tax Act 1961

What is Certificate for deduction at lower rate? What is the meaning of No deduction to be made in certain cases? Section 197 and 197A of Income Tax Act 1961

Is Tax deducted is income received? Credit for tax deducted? Section 198 and 199 of Income Tax Act 1961

What is the Duty of person deducting tax? What is Processing of statements of tax deducted at source? Section 200 and 200A of Income Tax Act 1961

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