CA Mihir Shah (Working with Suresh Surana & Associates) (231 Points)
25 June 2010hi friends,
i want to know whether in case of redevelopment of property the transit rent paid the builder to tenant is taxable under the head "Income from House Property " or it is a capital receipt?
if any relevant case laws exist on the same kindly share it with me..
Amir
(Learner)
(4016 Points)
Replied 25 June 2010
HI Mihir,
Can u pls elaborate the facts??
that rent is paid in respect of the property, which is being developed or it is the reimbursement of the rent paid for the temporary accomodation during the period of development....
CA Mihir Shah
(Working with Suresh Surana & Associates)
(231 Points)
Replied 25 June 2010
hi amir,
the case is that the rent is paid for temporary accommodation during the period of construction.
Amir
(Learner)
(4016 Points)
Replied 25 June 2010
Sounds bit unusual......
Anyways, then it will fall u/s 41(1) and will be treated as a Business Income, if the temporary accomodation is taken in course of business.
Otherwise, I dont think this receipt will be taxable...
Ashok
(Account Executive)
(43 Points)
Replied 04 April 2012
Hi Amir & Mihir,
Is the Tds Appilcable in this case as TDS on Rent .
Kindly explain pr advice
Thanks
Ashok
CAclubindia
