| Question And Answer | |
|---|---|
| Subject: | Tds applicability on monthly compensation payable under redevelopment project. |
| Category: | Income-Tax |
| Querist: | Vinit Parekh |
| Answered by: | Law Intern |
| Tags: | redevelopment, TDS |
| Date: | March 11, 2026 |
Is TDS applicable under Section 194IC on monthly compensation, shifting charges and Corpus fund payable by the developers to tenants under the redevelopment project.
Yes, TDS is applicable u/s 194IC on monetary considerations such as monthly compensation (e.g., for alternate accommodation), shifting charges (e.g., as betterment charges), and corpus fund payable by developers to tenants in a redevelopment project, provided these form part of the development agreement. The TDS rate is 10% and applies to resident payees, with deduction required at the time of payment or credit, whichever is earlier. TDS should be deposited in the PAN of each tenant (or society member) proportionate to their share or existing area.
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