| Question And Answer | |
|---|---|
| Subject: | TDS DEDUCTION IS APPLICABLE ON HARDSHIP UNDER REDEVELOPMENT? |
| Category: | Income-Tax |
| Querist: | U.V. GIRI |
| Answered by: | Law Intern |
| Tags: | hardship compensation, redevelopment, TDS deducted |
| Date: | February 8, 2026 |
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No. Hardship allowance paid by developers to flat owners/members during redevelopment (for inconvenience, displacement, shifting, etc) is a capital receipt & not a revenue/income receipt. This means it is not taxable as income in the hands of the recipient and so there is no TDS.
See No TDS on hardship and other sums and Sarfaraz S. Furniturewalla v. Afshan Sharfali Ashok Kumar (Bombay High Court)
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