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Question ID : 41131

Taxability in case of compulsory acquisition of the property

Hello Everyone!!! What will be the taxability of compensation received by the members of the society from the society for compulsory acquisition of common area of society by the government? Here, the Government authority will provide compensation to society and then society will distribute to members? So, how members taxability would be computed?

Posted by Manisha on Aug 31, 2021

Filed Under DIRECT TAXES

Answer ID : 81307

Society is a person under Income tax Act, hence compensation received by it will be taxable in the hands of society unless it is exempt, distribution of compensation to members of society will not be taxable in the hands of members

Posted by Hari Beldona on Sep 05, 2021