Case for opinion:
A Co-iperative Housing Society is going in for redevelopment. Apart from additional area builder has agreed to give us Rs.1400 per sqft of existing carpet area as corpus fund. This amount is being given as a compensation and inconvinience caused to each member for shifting to another place.
This amount will be paid as follows
a. 15% at the time of execution of development agreement.
b. 10% on obtaining IOD from MCGM
C. 25% after 6 months from vacating
d. 25% at the time of giving the possession of new flat to the existing members.
If any member is buying additional area the additional amount will be adjusted from the corpus fund.
Kindly give us your opinion
1) as to whether the amount received will be a capital receipt or revenue receipt.
2) Whether any tax will be payable on the receipts.- Please support with case laws if possible.
3) Whether we need to put any specific wordings in the agreement so that this amount is not subject to tax.
4) Whether there are any judgements against us.
Request you to give an exaustive opinion in writing. We will be circulating it to the members.
Since we are going in for redevelopment will we require to have a PAN card? Should I apply for PAN card?
PLZ REPLY AT THE EARLIEST....ITS VERY URGENT...
CAclubindia
