COMENSATION. RECEIVED FROM BUILDER IS TAXABLE OR NOT

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If you've received compensation from a builder due to delayed possession of your property, this payment is generally considered taxable income in the UK. Specifically, it falls under the 'Income from Other Sources' category for tax purposes. You should declare this compensation to HMRC to ensure you meet your tax obligations.

J K JAIN

J K JAIN (Querist)
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26 July 2024 Sir I HAD BEEN GIVEN A COMPENSATION FROM BUILDER AS DELAYED INTEREST ON POSSESSION OF FLAT BOOKED IN 2013 and agreed date of possession is 31 dec 2016 . I am not exiting thevproject and soon possession of flat will be given by builder in next month. Whether there is any laiblity of Income Tax or Not