What is the nature of payment covered under section 194LA ?
As per section 194LA, TDS provisions applicable on the payment of compensation at the time of acquisition of certain types of immovable property.
When to deduct TDS under Section 194LA?
Under section 194LA TDS shall be deducted if the payer is liable to deduct TDS u/s 194LA if the aggregate amount of payment during the financial year exceeds INR 2,50,000.
The payer shall deduct TDS within earlier of the below-mentioned dates –
- At the time of payment of the amount in cash; or
- At the time of payment of the amount in cheque or draft or any other mode.
What is rate of TDS under section 194LA?
The rate of TDS under Section194LA of the Income Tax Act is @ 10%.
The rate of TDS will be 20% in all cases if PAN is not quoted by the deductee.
Is TDS applicable on the compulsory acquisition of agriculture land ?
TDS under section 194LA is not applicable on compulsory acquisition of agriculture land( Both Rural and urban agriculture land).
Read Also : Section 194J – Fees for professional or technical services
What are the cases where there is no need to deduct TDS under Section 194LA ?
TDS is not deductible under section 194LA in the following cases when –
The person is paying an amount to a ‘non-resident’ person.
Aggregate consideration during the Financial Year is less than INR 2,50,000.
Payment is in respect of any award/agreement which is exempt from income tax.
The payee has filed an application in Form No. 13 to the Assessing Officer and has obtained a certificate for No / lower deduction of tax.
In which form TDS certificate shall be issued to the deductee by deductor ?
Deductors of tax shall issue a TDS certificate to the deductee in Form 16A on a Quarterly basis for TDS u/s 194LA.
Read Also : Section TDS on Dividend Income From Mutual Funds
In which form TDS return shall be filed for section 194LA?
TDS return is to be submitted quarterly and various details need to be furnished like TAN, amount of TDS deducted, type of payment, PAN of deductee, etc in FORM 26Q is to be filed.
