Avoid taxing hardship compensation twice

I had written in my column dated August 30, 2020, about how the newly introduced Taxpayers’ Charter is likely to be more effective as it is now a part of the main Income-Tax Act itself and carries the sanction of Parliament. Here, I am outlining a very fit case of double taxation of Hardship Compensation received on redevelopment, which deserves to be taken up for resolution under the Taxpayers’ Charter. 

This pertains to the taxation of hardship compensation paid by developers to homeowners in connection with the redevelopment of old residential properties. Mumbai is the city where this is widespread, though