Tax treatment on redevelopment of building

This query is : Open

CA CS CIMA Prakash Somani (Querist)
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29 September 2008 I want to know tax implications in below cases:

1. Our building is under redevelopement and builder shifts us to another house for which we are paying rent and getting reimbursment of the same. So what is treatment of Rent recd from the redeveloper??

2. We also got corpus fund of Rs 200000/- each member, wht is the treatment of the same???

Whether both are taxable incomes?

Do provide the section reference.

Thank you in advance.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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29 September 2008 1. If you receive the rent it will be taxable as other income. If the builder directly pays you will escape.

2. Is this fund a gift or an advance?

K V Subba Rao

K V Subba Rao (Expert)
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29 September 2008 Suggestion given by Sri Raghavan for first part is an appreciable solution from tax planning point of view

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CMA Jitendra Singh

CMA Jitendra Singh (Expert)
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29 September 2008 What is objective of Corpus fund which has been received by every member i.e 2 L

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Querist)
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13 October 2008 What would be the treatment in following objectives:
1. If corpus fund is given to each member and not to the society? and
2. If the corpus fund is given to the society?

Guest

Guest (Expert)

12 February 2012 Not a singlle reply here