Section 194LA - Payment of compensation on acquisition of certain immovable property.

Union Budget 2025-26 (Full) + Finance Bill, 2025

Section 194LA - Payment of compensation on acquisition of certain immovable property.

Section 194LA of the Act requires that 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, deduct an amount equal to ten per cent of such sum as income-tax thereon, provided that such amount exceeds Rs. 2,50,000/- in a financial year.

2. It is proposed to increase the threshold amount for requirement of deduction of tax at source under section from Rs. 2,50,000/- to Rs. 5,00,000/-.

3. This amendment will take effect from the 1st day of April 2025.

[Clause 62]

Full Text:

Union Budget 2025-26 (Full) + Finance Bill, 2025

Dated: 1-2-2025