| Question And Answer | |
|---|---|
| Subject: | Taxability of One time maintainace deposit collected by Developer |
| Category: | Income-Tax |
| Querist: | Prakash |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | Developer, security deposit, taxability |
| Date: | June 2, 2023 |
Assessee is promoter and Builder. During the course of carrying of business, assessee accepted one time deposit from flat purchaser for future maintainance of the building. AO is the opinion that it is taxable in the year of receipt , where as assessee is saying that it is not taxable in his hands as assessee is only custodian and after deduction of expenses incurred for maintenance, will be handover the balance to society .
Whether assessee’s stand is correct ? Or AO is correct ?
Pl guide .
The assesee’s stand is correct. However, this has to be explained and demonstrated to the Ld. AO’s satisfaction though documents.
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