Tds on rentals and corous

Querist : Anonymous (Querist) 12 December 2024 This query is : Resolved
I have been given to understand that the developer cannot deduct TDS on corpus fund and rentals from the members when the building
goes for redevelopment. Need clarification on this matter.

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This discussion clarifies the deductibility of Tax Deducted at Source (TDS) on corpus funds and rental payments received by members during building redevelopment. Generally, corpus funds are considered capital receipts and are non-taxable, meaning TDS is not applicable. Similarly, transit rent received from developers during redevelopment is also typically exempt from TDS obligations.

T. Kalaiselvan, Advocate (Expert) 12 December 2024
Receipt of corpus fund is a capital receipt and hence non taxable.
According to section 194-IC, if under a joint development agreement, any developer pays any amount to the land owner in addition to the share in the project, then such builder shall deduct TDS @ 10 % on such payment.
Transit rent received from builders during redevelopment projects is not taxable and thus is exempted from tax deduction at source (TDS) obligations

Dr. J C Vashista (Expert) 15 December 2024
Corpus fund is non-taxable.

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