Mrs. R, being owner of the building, enters into an agreement of joint development with Mr. E, and Mrs. R will receive one flat and Rs.15,00,000 as consideration. She will also receive Rs.50,000/month towards rental compensation. Mr. E deducted TDS on all the payments made. Is rental compensation received under joint development agreement taxable? TDS deduction made by Mr. E on payments of Rs. 50,000. Is it valid deduction?
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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)
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Rental compensation received under joint development agreement