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 Octo‚ber, 2004, namely:ó

ë194LA. Payment of compensation on acquisition of certain immova‚ble property.óAny person responsible for paying to a resident any sum, being in the nature of compensation or the enhanced compen‚sation 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 agricultur‚al 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.óFor the purposes of this section,ó

ÝÝÝÝÝÝÝÝ (i)Ý ìagricultural landî 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;

ÝÝÝÝÝÝÝ (ii)Ý ìimmovable propertyî means any land (other than agri‚cultural land) or any building or part of a building.í.