Major relief for homeowners: ITAT rules redeveloped flats not taxable as ‘other income’
In a big relief to homeowners in Mumbai and other cities whose projects are undergoing redevelopment, the state Income Tax Appellate Tribunal (ITAT) has held that the cost of a new flat provided to a homeowner during a redevelopment project ought to be exempted from tax as ‘Income from Other Sources’ under Section 56(2)(x) of the Income Tax Act.