Compensation from Builder whether taxable ?
This query is : Resolved
05 August 2024
Dear Sir
I have booked two flats at Pune from welknown builder one my own name( Senior citizen and iinteredt ncome is 4 lakhs) and second on. my son name (his incone is under 30% slab) . Their was abnormal delay in construction. But unfortunately he has managed to get extension in RERA date. After lot of chaos and adverse publicity in media builder is agreed to pay Rent of 30 K per month till possession. He has given two option
1. Either to collect cheque subject to TDS deduction.
2. Get credit note which will be adjusted in amount payable to Builder .
I think second option will not be taxable. Is it correct ?
3) If opted 1st option of cheque under which head is taxable ?
4) Whether to collect cheque in my name and get credit not in my son name .. Whether this is good option from taxation point of view ?
Which will be better in taxation point. ?
I have booked two flats at Pune from welknown builder one my own name( Senior citizen and iinteredt ncome is 4 lakhs) and second on. my son name (his incone is under 30% slab) . Their was abnormal delay in construction. But unfortunately he has managed to get extension in RERA date. After lot of chaos and adverse publicity in media builder is agreed to pay Rent of 30 K per month till possession. He has given two option
1. Either to collect cheque subject to TDS deduction.
2. Get credit note which will be adjusted in amount payable to Builder .
I think second option will not be taxable. Is it correct ?
3) If opted 1st option of cheque under which head is taxable ?
4) Whether to collect cheque in my name and get credit not in my son name .. Whether this is good option from taxation point of view ?
Which will be better in taxation point. ?
06 August 2024
Collect cheque in both of your names for the purpose of taxation as you booked flat in both the names.
06 August 2024
Sir, We have booked two flats, one my name (sr.Citizen) and second booked by my son who is taxable at higher rate. Builder will not give both cheques in my name. My issue is - whether compensation for delay of possession of flat is taxable ?
Second option is whether we opt for credit note from builder which will be adjusted against amount payable to him - is taxable ? If opted for cheque it is necessary to show in return as income ?
Second option is whether we opt for credit note from builder which will be adjusted against amount payable to him - is taxable ? If opted for cheque it is necessary to show in return as income ?
06 August 2024
Opt for second option which is not taxable.
First option taxable and show in return.
First option taxable and show in return.
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