Taxation Of Alternate Accommodation - Simplified

Affluence Advisory | Last updated: 05 May 2023

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Receiving monthly rental compensation from a builder during property redevelopment, known as alternate accommodation, has long been a point of tax ambiguity. However, a recent ruling by the Income-Tax Appellate Tribunal (ITAT) in Mumbai has clarified that this compensation is considered a capital receipt due to the hardship faced by flat owners. Therefore, it is not taxable in their hands, regardless of whether they actually rent another property.

What is Redevelopment? Redevelopment refers to the process of reconstruction of the premises by demolition of the existing structure and construction of new structure in its place. This is done by utilizing the potential of the land by exploiting additional TDR, higher FSI, etc. What is altern

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1 Year PLAN

1999

(Excl. of GST ₹359)

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2 Years PLAN

3499

(Excl. of GST ₹629)

3 Months PLAN

999

(Excl. of GST ₹179)

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