Received money to vacate your flat for redevelopment? ITAT clarifies when the compensation may be tax-free

The Mumbai Income Tax Appellate Tribunal (ITAT) has clarified that compensation received by a flat owner for hardship during a housing society redevelopment can be tax-free. In a recent ruling, the ITAT decided that ₹82 lakh received as compensation was not taxable income. This ruling provides guidance for homeowners receiving compensation from builders during redevelopment projects.