Not legal advice — verify with CBDT

TDS Section 194LA Compulsory acquisition of immovable property

FY 2025-26 · Rate 10%

Section
194LA
Rate (with PAN)
10%
Rate (no PAN)
20%

What does this section cover?

TDS on compensation paid for compulsory acquisition of immovable property (land/building) under any law.

Why this section: Compensation under land acquisition laws (NHAI, state PWD, etc.) above ₹5L per FY attracts 10% TDS.

Note: Compensation for agricultural land acquisition under RFCTLARR Act 2013 is exempt.

Key facts

Threshold
₹5,00,000 aggregate per FY
Applicable for
FY 2025-26
Who deducts
Government / acquiring authority
Paid to
Property owner
Statutory source
Section 194LA, Income Tax Act
Compute and file this TDS with CAhelperFree TDS computation, Form 26Q prep, challan generation — Part of KLI.

Common terms accountants use

If your description mentions any of these, Section 194LA is likely the right answer. The matcher in this tool is a keyword scorer — not an AI classifier — so cross-check borderline cases against the official CBDT TDS rate chart.

land acquisitioncompulsory acquisitiongovernment compensationhighway acquisition

Related TDS sections

Other sections in the same series or adjacent. Useful when narrowing down between similar payment categories.

Need a different section?

Describe the payment in plain English — “rent of plant”, “senior citizen interest”, “NRI dividend” — and the matcher will surface the right section.

Search TDS sections →

Source: curated from the CBDT TDS rate chart. Dataset snapshot: 2025-04-01. Rates can change between Finance Acts and notifications — verify before deducting.