May 28, 2024: The transit rent paid by the developer to the owner when the property goes for redevelopment does not qualify as revenue/income and so cannot be taxed, the Bombay High Court in an order dated April 15, 2024 mentioned.
The case in point is the writ petition filed by Sarfaraz S. Furniturewalla, following which HC started hearing the case on whether tax deducted at source (TDS) is applicable on the transit rent paid by developers for a project that goes under redevelopment. Since tax receipt is not counted as income, the question of TDS does not arise, the HC pointed out.
What is transit rent?
The transit rent is the amount paid by developers to owners towards temporary accommodation when the owner’s property is getting redeveloped.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
