Transfer premium of housing societies

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This query is : Resolved

PRATIKSHA (Querist)

12 September 2016 Transfer premium received by housing societies shall be considered as balance sheet item or income and expenditure item ???

Amol S Joglekar

Amol S Joglekar (Expert)

13 September 2016 The CAP /limit is set by the respective States on the charging of Transfer premium.
The premium accepted over and above such CAP / limit is taxable under income tax.......so this is Revenue receipt.
The premium accepted within the CAP /limit is not taxable under income tax...... treat this as capital receipt

PRATIKSHA

PRATIKSHA (Querist)

13 September 2016 ya sir understood. thank you so much.

Amol S Joglekar

Amol S Joglekar (Expert)

13 September 2016 You are most welcome.

PRATIKSHA

PRATIKSHA (Querist)

14 September 2016 sir i want to know under which section we can claim exepmtion of transfer premium ?????

Amol S Joglekar

Amol S Joglekar (Expert)

14 September 2016 https://taxguru.in/income-tax/transfer-fees-received-cooperative-housing-society-exempt-incometax-principle-mutuality.html

https://timesofindia.indiatimes.com/city/mumbai/Housing-society-need-not-pay-tax-on-transfer-fees/articleshow/45802317.cms

https://taxheal.com/taxability-of-premium-received-by-society-on-transfer-of-plots.html

please go through the links

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