Gajanan Joshi (Manager (Accounts & Finance)) (81 Points)
20 November 2014In case of a builder who has acquired a property for redevelopment and paying monthly compensation for displacement of the landlords during the period of construction activity as per development agreement whether TDS is required to be made on such compensation...?
the builder has not made any arrangement for accomodation of the landlord(s).
Mihir
(Wealth Manager)
(5293 Points)
Replied 20 November 2014
I don't think TDS will be applicable here. The landlord is not providing any services to the builder and therefore the payment made to the landlord is not an income in the hands of the landlord. It is only a reimbursement of expenses incurred by the landlord toward rent paid.
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