• I got EMI reimbursement from builder - will that be taxable income

I bought a flat in march 2016 under Subvention scheme emi till offer of posession, Till august 2019 byilder paid pre emi (interest)directly to bank.
But from Sep2019 builder said Complete EMI (Prinicipal and interest) I will pay to bank and builder reimbursed it to me into my account after deducting 10% TDS .
And builder gave me posession certificate on March 2,2020 so this reimbirsement and TDS deducted by builder is showung in my 26AS . So will this be my tacable income or Is there any way I can avail tax deduction.
Asked 11 days ago in Income Tax

Dear Sir,


Hope you are doing well !!


No, it won't be taxable.


Also, you can claim the tds refund while filing ITR subject to actual tax liabilities.


We may assist you for the same.


It is advisable to take a phone consultation for detailed discussion.



Payal Chhajed
CA, Mumbai
4796 Answers
90 Consultations

5.0 on 5.0



This will not be taxable.


While ITR filing you can get credit for the same.

Karishma Chhajer
CA, Jodhpur
2167 Answers
15 Consultations

5.0 on 5.0

It is Capital receipt hence it is not taxable.

Narendra Sonagra
CA, Ahmedabad
57 Answers

Not rated

if it is only reimbursement then why bulider is deduction 10% tds so first refer your agreement with bulider then any concrete advise can be given if it is reimursement then no income arise & you can not avail 80C on amt of reimburse emi

Nitin Jain
CA, Jaipur
166 Answers

4.7 on 5.0



The reimbursement would not be taxable, subject to the proper documentation in place. 

I hope this answer satisfies your requirements.



CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2451 Answers
8 Consultations

5.0 on 5.0

Yes as he has also deducted TDS we will have to declare it as income.

Further I need to see the contract to comment on same.


Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo
CA, Jaipur
3602 Answers
39 Consultations

5.0 on 5.0



If its just a reimbursement it should not be taxable. However, at the same time, builder should not jave deducted TDS also.


We need to look into the agreement to decide whether its really a reimbursement or something else and thereby its taxable or not.

Lakshita Bhandari
CA, Mumbai
5160 Answers
348 Consultations

5.0 on 5.0

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