My mother's (a senior citizen) flat is being redeveloped and she gets monthly rent from the builder and recently also received displacement/hardship charges as part of the agreement with the developer. TDS was subsequently cut and it is being seen in her Form 26AS. While filing her returns I added these amounts as "Exempt Income" which is for reporting purposes only. Subsequently, she should get back the TDS that has already been deducted as a refund. She has received a defective return notice under 139(9) today which says the following:
"The gross receipts/income, on which tax has been deducted, are to be entered in the schedules under the respective heads of income, as they are assessable in the year in which the credit for the TDS is being claimed."
I have replied saying that I do not agree since this income is not taxable and hence is added under Exempt Income. Is this correct? Where in the ITR should I add these amounts?
CAclubindia
