An amount of Rs 11 lac was paid to builder from Sept.2008 to Oct. 2013 which was to be delivered in 2011 as per the agreement, Subsequently case was filed in NCRDC . Builder agreed for a settlement by t returning Rs 11 Lac Principle and 8 lac as Interest . An amount of 10 % will be deducted as TDS on interest by builder . Net amount payable will be 11 + 7.2 = 18.2 Lac & TDS Certificate for Rs.80,000.. Question is whether Rs 8 Lac can be treated as Capital gain in 2019 ( FY-2019-2020) .
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Is their any that this amount can be transfered to my Children who are above 18 years with PAN number so that this is treated as their income in FY 2019-2020 & not mine
At the time of booking, the buyer acquires a right in the ownership of the flat. When he settles with the builder he is extinguishing this right. Thus, the amount paid to him is characterised as sale proceeds of the capital asset,
2) “The sale proceeds so received, less the indexed cost, in the case of a long term capital asset, would be a longterm capital gain (LTCG), which attracts a lower I-T rate of 20% plus surcharge and cess
This interest amount is not capital gain. Check the order. If the main contention of payment of interest is to compensate any loss or damages, then it is not a taxable income. No need to pay tax on it.
Yes on the interest part the TDS shall be deductable and that shall be treated as income.
See since the flat was booked in your name you will get the amount of refund along the interest.
Amount received from court as compensation is not income
No, Property never purchased, so no question of resale of property ever arise.
IF your want to gift than it will be taxable at their hand.
