If a flat is booked with the builder under BBA. But due to certain reasons, client did not take possession and had a litigation case running in consumer court. Builder wants to settle the matter out of court. If the cost of property is 40 lacs and builder offers 60 lacs as total amount of settlement. So, have below queries:
1. What will be the tax liability in this case?
2. Will the excess amount considered as capital gains or interest amount?
3. Any particular document would be required from builder in this case?
4. Will excees amount be clubbed ot normal income?a
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