Paresh (Sr.Manager) 12 July 2012
Dear Sir / Madam,
As my housing society located in Mumbai is going for the redevelopment. New developer / builder is offering lumsum amont for 22 months as compensation for alternate accomodation. My question is wheather this lumsum amont recevied from Deverloper as compensation for alternate accomodation is taxable as per per income tax slab or not?
If not, under which head it is exempted?
R RAJAGOPALAN (ADVOCATE) 22 August 2012
Your query is: As my housing society located in Mumbai is going for the redevelopment. New developer / builder is offering lumsum amont for 22 months as compensation for alternate accomodation. My question is wheather this lumsum amont recevied from Deverloper as compensation for alternate accomodation is taxable as per per income tax slab or not?
If not, under which head it is exempted?
Answer: It appears that you are transferring your flat to the builder, in exchange for some consideration - which you have not disclosed. The compensation for alternate accommodation, is a part of that consideration. Therefore, the compensation will have to be reckoned as a part of the consideration received, while computing your income from Capital gains. Otherwise it is exempt from income tax, being a capital receipt in your hands.
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