Builder Delays and RERA Complaints
Do we have to pay any government fees or taxes when we get compensation from RERA?
Written By: GatePal Analyst
Last Updated on
Short Answer
No, you do not have to pay any government fees or taxes when you receive compensation from RERA.
Detailed Explanation
Rule 20 of the Gujarat RERA (Real Estate Regulation and Development) Rules, 2017 states that any compensation or interest awarded by the Real Estate Regulatory Authority shall be paid without deduction of any tax or fee. This means that if you receive compensation from RERA due to builder delays or any other reasons, you are entitled to receive the full amount without any deductions for taxes or fees.
In practice, this rule ensures that the aggrieved party receives the entire compensation amount as determined by RERA, without any reduction due to taxes or government fees. This is beneficial for the complainant as they get the full relief amount as decided by the regulatory authority.
Real-world Scenarios
Mr. Patel filed a complaint with RERA against a builder for delay in possession of his flat. RERA ordered the builder to pay compensation to Mr. Patel. As per Rule 20, Mr. Patel received the full compensation amount without any deductions for taxes or fees.
Ms. Shah won a case against a developer for faulty construction and received compensation from RERA. She was able to receive the entire compensation amount without any deductions, as mandated by Rule 20.
Reference
Rule 20 of the Gujarat RERA (Real Estate Regulation and Development) Rules, 2017: Official PDF
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