A person liable to pay any compensation to the owner of an immovable property for the acquisition thereof, shall deduct tax at the following rate while paying the compensation;

(a) 6% (six percent) of the total amount received as compensation if any immovable property is situated in a city corporation, municipality or cantonment board area;

(b) 3% (three percent) of the total amount received compensation if any immovable property is situated outside the City Corporation, Municipality or Cantonment Board area.