Income tax on redevelopment of residential units

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This discussion explores the income tax liability for members of a co-operative housing society undergoing redevelopment. It details various forms of compensation received by members, including garages, new flats, hardship allowances, corpus funds, brokerage, shifting charges, and rent. The advice given suggests that only actual expenses incurred under these heads are deductible, with any additional amounts being taxable. The impact of not incurring certain expenses, like rent or brokerage, on the tax calculation is also questioned.

V Ishu Hegde

V Ishu Hegde (Querist)
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26 March 2025 in a case of redevelopment of co.op housing society the bldr has give the member of the society
1.garage hardship compensation tothe members who have surrendered garage a sum of rs.2400000/- samp duty value rs.3109906/-
2 flat in lieu of flat surrendered with xtra room.
3.displacement hardship compensation.
4. member corpus fund to each member
5. brokerage
6. shifting charges
7. rent till the new flat is handed to the member
how will the liability for income tax be calculated? if no rent, brokerage , shifting expense is not incurred will the calculation of liability for tax change?