Though given to understand that the Hardship compensation and Rent paid to members in a Redevelopment project are exempt from Income Tax, the Developer under the Joint Development Agreement deducts the TDS on these amounts @10% under section 194IC. If it is exempt for I.T., how do individual claim a refund of the TDS?

Ans: Yes matter is still litigative. There are certain Judgments in which it was held that Compensation paid by builder during redevelopment of flats is capital receipt and not taxable. Considering amount of compensation you have received and cost of litigation, in my view, you should offer the said compensation to tax as Income from other sources which will taxed at slab rate.

Ans: Yes, you can claim a refund of TDS done at the time of sale of property. The procedure to claim a refund is as follows:
• PAN Card of both transferor & transferee is required.
• Transferee/purchaser needs to register himself/herself in TRACES with PAN.
• On deduction of tax u/s 194IA, the deductor needs to generate 26QB online.
• Tax payment needs to be made online within due date.
• On payment of tax, 26QB needs to be filled within due date.
• On successful filling of 26QB, TDS certificate in F16B can be generated online and needs to be issued to the deductee within due dates.
• In case of any alteration, Form 26QB can be altered online at TRACES.

For the above, you require the following information:-
1. PAN of the seller
2. PAN of the buyer
3. Date of payment
4. Amount of payment
5. TDS deducted

After completion of all the above steps, the system will show a tax credit in 26AS of the deductee. The Income Tax Department will process your refund request. Once the Income Tax Department has processed your refund request, the refund will be credited to your bank account within a few weeks.

Ans: You may file ITR-U & claim your TDS.