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Taxability of hardship compensation

Tax queries 2133 views 4 replies

I have received "HARDSHIP COMPENSATION' from biulder on redevelopment of our society. Will this amount be taxable Silimer to amount received as salary part namely city compensatory allowance received by an employee when he has to stay in a city for job and incur extra expenditure  and hardships, which is taxable.

If this is not taxable then under which section or rule or is there similer case study for this for Non taxability of such amount received

Replies (4)
Can u pls explain the nature of the so called HARDSHIP COMPENSATION.

Builder is paying us CORPUS amount on redevelopment of society; stating as "HARDSHIP COMPENSATION

 

Did the flat owners get this amount or the cooperative society?

According to the decision of the Bombay Tribunal in the case of Lohtse Co-operative Housing Society Ltd vs Seventh Income-tax Officer r the said corpus fund received by you is in the nature of capital receipt and not taxable. but this issue is not free from doubt.

Mam,

I the Flat owner received this Corpus / Hardship compensation from builder since developemt rights were given by our society to Builder 


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