I have question regarding Rent received from builder for the Redevelopment of will it be taxable and if it is taxable so under which head it would be charge.
And the rent paid against this rent received will it be allowable?
26 August 2013
Indani Sir, Thank you so much sir for your kind reply. In fact, our premises went for redevelopment under Slum Rehabilitation Authority (SRA) project. As you know that builder who is redeveloping the Premises under SRA he get the free FSI from the MHADA. So, for redevelopment of premises eighter they give US Compensation(RENT) Till the project Completion or he provides the accomodation. Hence, we received a Cheque on yearly basis from them.
So, please sir let me know the amount received from builder under this is it Taxable. If Yes so under which head it is taken i.e. under House Property or Under Other Sources.
And Rent paid by Us will it be allowed as a expenses against the amount received.
CAclubindia
