04 December 2011
PLEASE ADVISE US IF AGRICULTURE LAND HAS BEEN ACQUIRED BY GOVT,FOR IRRIGATION PROJECT SAY BARRIAGE PURPOSE AND SPECIAL LAND ACQUISITION OFFICER (UNDER COLLECTOR OFFICE DEPT) HAS DEDUCTED TDS @10% ON TOATL PAYMENT OF LAND COST BY GOVT WHERTHER WE ARE EXEMPT FROM CAPITALGAIN IF YES UNDER WHICH SECTION WE SHOULD CLAIM INCOME TAX(TDS) REFUND FROM AO THE FARMERS ARE HAVING NO OTHER SOURCE OF INCOME OTHER THAN AGRICULTURE INCOME THE LAND ACQUIRED IS OUT OF MUNCIPAL AREA SAY 12 KM AWAY. THE LAND SO ACQUIRED IS ANCESTRAL PROPERTY DATE OF PURCHASE OR TRANSFER CANNOT BE TRACED OUT.
As per SEC.194LA of the Income Tax Act, 1961 TDS provisions are not applicable in case of rural agriculture land. Further if the the tax has already been deducted write the letter stating that the TDS provisions are not applicable. Further if the income of the farmer does not exceed basic exemption limit no need to file the retun otherwise they have to file the return to claim the refund
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