# The Finance Act, 1999, Section 74: Insertion of new section 194L

- Act: The Finance Act, 1999
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/finance-act-1999/section/74/

## Text

Insertion of new section 194L. 74. After section 194K of the Income-tax Act, the following section shall be inserted with effect from the 1st day of June, 1999, namely :— "194L. Payment of compensation on acquisition of capital asset.—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 capital asset 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 on income comprised therein : Provided that no deduction shall be made under this section 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.". © Copyright. Taxmann Publications Pvt. Ltd.

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