14 January 2010
An Individual having one flat. A builder wants to reconstruct it so he tooks over the Property and pays RENT and also Rs. 10 lac in lumpsum as a compensation. After reconstructing, the builder returned the property to the OWNER. What will be the treatment of Rs. 10 Lac for Income Tax Purpose? Plz Reply..........
14 January 2010
Difficult to say but it should be Income from Other source or will be treated as deduction from the cost of flat.. not sure please recheck and let me know.
14 January 2010
Not clear as why Rs. 10 lakh has been paid by the builder? If it is a refund by the builder, it is a capital receipt & shall be reduced from the cost of acquisition.
CAclubindia
