Section 194LA of Income Tax Act
As per Section 194LA of Income Tax TDS required to deduct if the payment is made to resident person for compensation for the compulsory acquisition of immovable property.
Here the compensation also includes the enhanced compensation regarding the compulsory acquisition of immovable property.
Rate of TDS u/s 194LA:
- As per section 194LA of income tax act TDS rate is 10% if the aggregate amount of payment during the financial year exceeds INR 2,50,000.
- No surcharge, education cess, or SHEC shall be added to the above rate. Hence, TDS shall be at the basic rate.
- The rate of TDS will be 20% in all cases if PAN is not quoted by the deductee.
Time For TDS Deduction u/s 194LA:
The payer shall deduct TDS within earlier of following 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.
Exceptions to Section 194LA:
TDS is not deductible under section 194LA in the following cases when
- 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 person is paying an amount to a ‘non-resident’ person.
- 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.
- If the compulsory acquisition of immovable property is an Urban/Rural Agricultural Land in India.
Due date of TDS deposit and Filing of TDS returns:
The Deductor is liable to deposit TDS with the Government with following dates:
| Particulars | Due date of Deposite |
|---|---|
| April-February | 7th of Next following next Month |
| March month | 30th April |
The Deductor is liable to File TDS Returns in the Form 26Q with the Government with following due dates:
| Quarter | Due Date for Return |
|---|---|
| April to June | 31st of July |
| July to September | 31st of October |
| October to December | 31st of October |
| January to March | 31st of May |
Due dates for Issue of TDS Certificate:
Here the TDS statement means Form 16A which is issued by specified persons who is required to deduct the TDS.
Form 16A is issued to the deductee with the following due dates
| Particulars | Due Date |
|---|---|
| April-June | 15th August |
| July-September | 15th November |
| October-December | 15th February |
| January-March | 15th June |
Consequences Non compliance of TDS deposit and TDS Return within Due Date:
| Particulars | Rate of Interest/Penalty |
|---|---|
| When TDS not deducted | 1% per month or part of the month |
| TDS deducted but not Deposited to the Government | 1.5% per month or part of the month |
| Late filing of TDS Return | As per Section 234E, Late fee is 200 per day but not exceeds TDS amount |
