Amendment of section 194LA.
79. In section 194LA of the Income-tax Act, in the proviso, for the words “two hundred thousand rupees”, the words “two lakh and fifty thousand rupees” shall be substituted with effect from the 1st day of June, 2016.
Notes on Clauses:
Clause 79 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 of the aforesaid section, inter alia, provide that no deduction shall be made in case where the amount of compensation or aggregate of such sum relating to acquisition of immovable property (other than agricultural land), credited or paid or likely to be credited or paid during the financial year to the account of, or to, the payee does not exceed two hundred thousand rupees.
It is proposed to enhance the said threshold limit from two hundred thousand rupees to two lakh and fifty thousand rupees.
This amendment will take effect from 1st June, 2016.