1961Section 194LA
194LA. Payment of compensation on acquisition of certain immovable property.
In the 2025 Act1 match · Unreviewed
- 2025 Sections 393, 402
From the Income Tax Department's correspondence.
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 45[five lakh] rupees:
Provided further that no deduction shall be made under this section 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).
Footnotes
- 45.Sub. for "two lakh and fifty thousand" by Act No. 7 of 2025, w.e.f. 1-4-2025.↩