Question ID :
44794
Transit Rent Received by Legal Heir
In few of the rulings High Court has clarified that Transit Rent i.e. Rent received for temporary accommodation by the owner of a property under redevelopment will be considered as "Capital Receipt" and hence will not be subjected to tax.
However, in case where the developer / builder has defaulted in payment of rent and pay in arrears after a few years after the death of the owner, the arrear is paid to the legal heir of the deceased owner, what will be the Income Tax Treatment of the arrears received by such legal heir.
Posted by
SHRUTI P BUDH
on
Feb 12, 2025
Filed Under
DIRECT TAXES
The charactor of the income will not change just because it was received in arrears or after the death of the person
Posted by
SIVADAS CHETTOOR on
Feb 16, 2025