Transit rent not subject to TDS: Bombay HC Moneycontrol.com
The High Court of Bombay, in an order dated 15 April 2024 in the matter of Sarfaraz S. Furniturewalla vs Afshan Sharafali Ashok Kumar & Others, held that TDS (tax deducted at source) is not applicable on transit rent / hardship allowance paid by developers to the owners / occupants of a project under redevelopment. The High Court (HC) has clarified that such transit rent is not to be considered as revenue / income. Consequently, there is no question of TDS as this is not income in the first place. Even though redeveloping a building brings lots of benefits, the tax implications of the transit rent has been debated for long.
