No TDS u/s 194I on Payment for Acquisition of Leasehold Rights over Immovable Property

Nagarjuna Oil Corporation Ltd. Vs ACIT (Madras High Court) The issue under consideration is whether payment for the acquisition of leasehold rights over immovable property is rental income and hence eligible for TDS u/s 194I ? High Court states that it is clarified that lump sum lease premium or one-time upfront lease charges, which are not adjustable against periodic rent, paid or payable for acquisition of long-term leasehold rights over land or any other property are not payments in the nature of rent within the meaning of section 194-I of the Act. Therefore, such payments are not liable fo...