| Question And Answer | |
|---|---|
| Subject: | Society redevelopment |
| Category: | Income-Tax |
| Querist: | CA Subodh Vora |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | corpus, redevelopment, Rent, Society development |
| Date: | June 22, 2023 |
In case of society redevelopment , Builder pays to society members hardship compensation, rent, corpus amount etc. Is builder liable to deduct TDS under section 194IC ?
In society redevelopment agreement , if Stamp duty value is more then the the consideration receivable in kind the section 50D is attracted to society member. Similarly there would be any implication to Builder in such case under section 56(2)(10)
Section 194IC of the Act is only applicable for transactions undertaken under section 45(5A) of the Act. We do not think that is your case. As we understand, section 54 of the Act is attracted in the case of a redevelopment of a residential building and the excess sum received in cash, if any, is a capital receipt.
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