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: Matter of TDS on such compensation is litigative. As per JDA agreement, if part consideration is pertaining to rights given to develop a real estate project, TDS is applicable.
Further, Refund of TDS can be claimed by filing income tax return.