Income tax liability on compensation received from builder

Tax queries 1273 views 1 replies

Hi All,

I had purchased a plot in a gated community from a land developer in 2002 in Bangalore. As per sale agreement, he was supposed to develop amenities in layout. He did not do so I filed a consumer court case in 2008 against him asking for compensation as per sale agreement . Court gave a partial relief and directed to pay part of penality last year. Accordingly, I received part of compensation last financial year (i.e. 2014-15). It is less than 2 lakhs.

I would like to know whether I am liable to pay income tax on this amount.

Please let me know.

Thanks

 

 

 

Replies (1)

As per the Income tax Act any amount received as Compensation from Capital Asset should be taxable in Same Assessement under the head Income From Other Sources


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