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Income due to building redevelopment and tax

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Ram K

120 Points Posted on 21 January 2023

Respected Sir/Madam,

Due to redevelopment of the society building I have received some corpus fund, rent compensation for alternate house (as original building is no longer there) and funds towards expenses like transportation (material movement & agent brokerage) from the builder.

I suppose corpus is tax free and rent is taxable but what about funds received towards minor expenses like transportation. Request you to confirm.

Thanks

Replies (2)

Quick Summary

This discussion clarifies the tax treatment of funds received during building redevelopment. While corpus funds are generally tax-free, rent compensation for alternate housing is taxable. Funds received for minor expenses like transportation, material movement, and agent brokerage are also considered taxable income, though related expenses can be claimed as deductions.

sabyasachi mukherjee

Profession

19978 Points Posted on 21 January 2023

I hv received some corpus fund but it's not acceptable. corpus is tax free.

CA Raj Doshi

Practising CA

5649 Points Posted on 24 January 2023

Funds for transportation (material movement & agent brokerage) from the builder is taxable under income from other sources. however you can corresponding expenses imcurred as a deduction