P.R. Sethuraman
Quick Summary
INTRODUCTION As the Title of the article suggests, it is not the Capital Gains Tax under the Income Tax Act that has been copiously dealt with in section 54 of the Income Tax Act that can be referred to the Act. But, the crux of this article is to examine whether redevelopment compensation pai
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FAQ :
No, compensation paid by a builder for hardship faced by the owner due to displacement or for alternate accommodation during redevelopment is considered a capital receipt and is therefore not taxable.
No, whether you receive the compensation as a lump sum or a monthly amount, it is treated as a capital receipt and is not liable to tax.
Even if the compensation received for alternate accommodation is not utilised for that purpose, it is still treated as a capital receipt and remains non-taxable.
No, the taxability of compensation remains the same whether the property is residential or commercial, self-occupied or let out.
Rent paid by a builder as compensation for alternate accommodation during redevelopment is considered a capital receipt and is not taxable.
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