Dear Sir / Madam,

I would like to understand taxation in simple terms in the case of the redevelopment of a building for its members. I have read a few articles but did not get clarity on taxation and its reporting in the ITR etc. My queries are as follows:

This building is a Pagdi building situated in Mumbai, where the tenants have come together for the redevelopment of the building through a developer. They will receive 450 sqft in exchange for their earlier 240 sqft. The building was constructed in 1945.

There are two types of tenants: A) Tenants who are not going for additional area other than what they are eligible for, i.e., 450 sqft. B) Tenants who are going for additional area beyond what they are eligible for, i.e., may go up to 600 sqft.

The development agreement is entered into on 14-02-2025. All tenants are opting for flat in exchange of their property.

My questions are as follows:

1) Is the tenant required to show this transaction in their ITR for AY 2025-26 as a sale of property to developer? If yes, what could be the cost price and sale value? Will there be any capital gain in both cases mentioned above?
2) Is the tenant required to obtain a valuation report as of 01-04-2001 and 14-02-2025?
3) If not shown in AY 2025-26, and the construction is completed after two years, say on 14-02-2027, is the tenant required to show this transaction in the ITR for AY 2027-28? What would the cost price and sale value be in this case?
4) Is the rent received from the developer for relocation to another place taxable?
5) Is any hardship allowance received taxable in the hands of the tenant?
6) Is GST payable by the tenant at any point during the entire redevelopment process?

I would be grateful if someone could clarify the above points and provide any additional considerations from a taxation and ITR reporting perspective.

Thanks & Regards,
Suraj

Sir,

One of my client have filed his ITR for the assessment year 2022-23 (non audit cases) on 27-10-2022 by choosing new tax regime by filing form 10IE on 14-03-2022. Whether he can eligible to file his ITR under new tax regime.

Sir, if an NGO receives funds from an organization for welfare works, and in this context, they give work contracts to individuals for tasks like repairing school buildings or renovating hospitals, the NGO is required to deduct TDS under Section 94C from those receiving the work contracts."

Sir,
I submitted my daughter's original IT return for the F.Y 2023-24 on 17.6.2024 and a revised return on the next day i.e on 18.6.2024. But still now the status of the return is showing "processing". Am I to do anything to complete the processing?
Thanking you
Prasanta Sengupta

Dear Sir/Madam
Plz guide

I have deposited TDS For FY 2024-25 In December 2024 under
Major Head: Income Tax Other than Companies (0021) &
Minor Head: TDS/TCS Payable by Taxpayer (200)
BUT by mistake I have Shown it in Tax Break up details of Challan as Interest & Fees under Section 234E
Can this Challan amount be used to pay TDS Tax of February 2025 Month.

Kindly advise

Can I accept funds from outside India in my local bank account and deposit them into his (NRE) local chitty investments from my bank account?

Is there any limit to accepting funds from foreign sources in our local bank account?
Are the same treated as income to us?

Dear Sir / Madam,

My query is as follows:
Mr A sold his flat on 23-09-2024. He entered into an agreement to purchase a new flat on 30-05-2023, which is still under construction. To claim the exemption of LTCG, he must purchase the new property one year before the date of sale of the old property.

In this case, it is more than one year (30-05-2023) before the sale date of the old property (30-09-2024), but still under construction.
Will he be eligible for LTCG exemption?

Kindly guide.
Regards,
Suraj

Probably a dumb question but if I as a tenant rent a property in USA from a foreign person or NRI, Do I need to deduct TDS? Initially I paid the security deposit and 1 month rent From my Indian account when I went for employment abroad.

Is 15CA or 15CB needed in this case? I paid using my Indian debit card and also used the Indian debit card for initial expenses like food, travel.

Dear Sir/Madam
Plz guide

In latest Budget announced in Feb 2025 “individuals earning up to ₹12 lakh annually would not have to pay income tax”
Plz clarify whether individual having Business Income of 10 lakh and Interest income of 5 lakhs and opting New Regime liable to pay tax as per the Budget amendment

If a person purchase flat of value 55 lacs which is under construction can tds be deducted and paid on full value of consideration instead of on each installment