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Mihir Tanna  |1054 Answers  |Ask -

Tax Expert - Answered on Jul 07, 2023

Mihir Ashok Tanna, who works with a well-known chartered accountancy firm in Mumbai, has more than 15 years of experience in direct taxation.
He handles various kinds of matters related to direct tax such as PAN/ TAN application; compliance including ITR, TDS return filing; issuance/ filing of statutory forms like Form 15CB, Form 61A, etc; application u/s 10(46); application for condonation of delay; application for lower/ nil TDS certificate; transfer pricing and study report; advisory/ opinion on direct tax matters; handling various income-tax notices; compounding application on show cause for TDS default; verification of books for TDS/ TCS/ equalisation levy compliance; application for pending income-tax demand and refund; charitable trust taxation and compliance; income-tax scrutiny and CIT(A) for all types of taxpayers including individuals, firms, LLPs, corporates, trusts, non-resident individuals and companies.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more
Asked by Anonymous - Jun 14, 2023Hindi
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My house is under redevelopment, developer is giving us Monthly Rent Inr 24200 less TDS 10% inr 2420 = Inr 21780 and Hardship compensation of Inr 19800 per month. I have purchased new house of 1.07 crores by taking Home loan current outstanding is 54 lacs. I am paying EMI of Rs.44000. Please inform Rent and hardship compensation given by developer is taxable or not. Recently I heard that Court has given judgement that it is not taxable . Please advise if taxable and if yes how much tax I have to pay.

Ans: There are Judgements in which it was held that rent as well as hardship compensation being capital receipt not taxable. However, income tax department may consider it as Income from other sources and matter can be litigative.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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