Income due to building redevelopment and tax

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.

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

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register