Tax implication on Receipts by Co.Op Hsg Soc. while Development rights giving to Developer

[PRIYAM KHAMBHATA]

Respected Sir

My one of the client Co.Op Housing Society, who has given Development Rights to the Developer and received Corpus receipts of Rs. 27,00,000/- and Developer is deduced TDS u/s. 194-IC.

Please guide me what would be the tax implication on such receipts received from Developer in Income tax Return FY 2025-26 (AY 2026-27).

Thanking You

AI Summary

Tax treatment of corpus receipts from development rights transfers requires assessing income-tax reporting and tax deduction implications.
Income-tax treatment of corpus receipts received by a co-operative housing society for granting development rights to a developer is considered for return reporting. The developer has deducted tax at source under section 194-IC, raising the issue of the receipts' resulting income-tax implications in the society's return.