By Pradeep Singh
Gurgaon, April 26 (IANS) Minister of State for Defence Rao Inderjit Singh has sought Finance Minister Arun Jaitley's intervention in the matter of farmers in Gurgaon district having received notices from the Income Tax (IT) department.
Over a 100 farmers in Manesar and from the surrounding half a dozen villages have received notices from the IT department for payment of tax on land sales made over two decades ago.
"Gurgaon farmers' land was acquired by HSIIDC at a very meager rate in 1994 for setting up of IMT Manesar. HSIIDC deducted TDS on the amount of total interest. Now, IT department is serving notices to land owners for recovery of income tax as well as penalty on this tax," Singh, who is also MP from Gurgaon, said in letter to Jaitley, a copy of which is available with IANS.
He said that a writ petition in the mater was filed before the Punjab and Haryana High Court, and the court in an order dated November 29, 2013, said: "Perusal of relevant provisions of Land Acquisition Act and Income Tax Act and law laid down in aforesaid judgments, it is clear no tax is to be deducted at source from compensation awarded in lieu of acquisition of agriculture land.
"In respect of 'interest' it has to be seen whether interest is part of compensation, if answer is in affirmative, then tax cannot be deducted at source. If, however, it is for delay in making it does not form part of compensation and tax may be deducted at source."
Singh also said that HSIIDC has filed a special leave petition before the Supreme Court and matter is currently pending there.
"May I request you to kindly consider the appeal made by farmers and issue necessary directions to the authorities so that the farmers are not unnecessarily harassed," he said.
