INCOME TAX ON CORPUS FUND RECEIVED FROM BUILDER

[SUMEDH AYARE]

Dear Sir

Mhada Colony in Mumbai going for redevelopment. Builder is giving corpus fund Rs.25,00,000/- per member (individually in the hands of member).

I want to know whether any tax attracts or is there any exemption.

If it is taxable what is the rate of tax and under which head.

How to save the tax in the hands of individuals ?????????

Regards

Sumedh 

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.

AI Summary

Taxability of corpus fund from redevelopment: whether recipient members' payments constitute taxable income and under which head. Whether a corpus fund paid by a builder to individual members in a redevelopment scheme constitutes taxable income, whether any exemption applies, under which head of income it should be taxed, and what the applicable rate is, together with queries about methods to save tax on such receipts.