I had purchased an under construction property in 2011. The possession got delayed and builder paid me the penalty as per the terms & condition. The builder adjusted the penalty amount with the outstanding dues to be paid by me during possession of the flat. Is penatly amount an income for me or compensation ? Does penalty attracts any kind of Tax ? Where should one declares it in ITR form or it need not be declared ?
Menu
Tax on penalty given by builder ?
Replies (2)
The Penalty is in the nature of a capital receipt which will have to be reduced from the cost of acquisition of the property.
Dear Sir, Last week I initiated registration process and got papers related to it from the builder. In these papers, the builder has mentioned the actual Price of the Flat though while making the final payment by me, the builder adjusted the penalty amount for the delayed possession. So, as per the builder's record, penalty is shown in the final payment sheet. So, Is there any tax to be paid by me on the penalty recieved ?
Recent Topic
- Startup exit in Sept 2025: Can I still save LTCG t
- Need advice
- GST registration
- Tax Refund timeline
- Is Form 10E applicable for Notice Pay received in
- INCOME RECEIVED FROM COMPANY FOR ELECTRIC POLLS
- ITR Processing By CPC Now Super Fast - Much apprec
- Abroad Jobs
- Professional Income in 44AD
- Presumptive taxation
Related Topics
CAclubindia
