# The Finance Act, 2004, Section 38: Insertion of new section 194LA

- Act: The Finance Act, 2004
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/finance-act-2004/section/38/

## Text

Insertion of new section 194LA. 38. After section 194L of the Income-tax Act, the following section shall be inserted with effect from the 1st day of Octo­ber, 2004, namely:— ‘194LA. Payment of compensation on acquisition of certain immova­ble property.—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 thereon: 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. Explanation.—For the purposes of this section,— (i ) "agricultural land" means agricultural land in India including land situate in any area referred to in items (a) and (b) of sub-clause (iii) of clause ( 14) of section 2; (ii ) "immovable property" means any land (other than agri­cultural land) or any building or part of a building.’. © Copyright. Taxmann Publications Pvt. Ltd.

---
Published by eCourtsIndia together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957.