Land Acquisition

P.S.Subbaraman (Querist) 15 September 2009 This query is : Resolved
Whether the State Government while paying compensation to land owners should deduct TDS for the amount of compensation ?Can Compensation be treated as income ?riven

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Raj Kumar Makkad (Expert) 15 September 2009
Yes. State is well within its right to deduct TDS out of payment of compensation. It may not be income but it is a payment of specific type liable for TDS as provided in Income Tax Act.riven

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