Amendment of section 194LA.
72. In section 194LA of the Income-tax Act, in the proviso, for the words “one hundred thousand rupees”, the words “two hundred thousand rupees” shall be substituted with effect from the 1st day of July, 2012.
Notes on Clauses:
Clause 72 of the Bill seeks to amend section 194LA of the Income-tax Act relating to payment of compensation on acquisition of certain immovable property.
The existing provisions contained in the aforesaid section 194LA provide 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, 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. However, the proviso to the aforesaid section provides that no tax will be required to be deducted 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.
It is proposed to enhance the said limit from one hundred thousand rupees to two hundred thousand rupees.
This amendment will take effect from 1st July, 2012.
