Tax on interest received from builder after 10 years of booking

I had booked a shop with a builder in 2006 and paid 95% of the amount. However due to non receipt of completion certificate the builder could not give possession of the shop. Now, after 10 years the builder is paying an interest of 12%. Will this interest be taxable, If yes, what can I do to minimize the taximpact.
Asked 1 year ago in Income Tax from Delhi, Delhi
Dear Sir,

Yes, this interest will be taxable.

You can invest amount of INR 150000 under 80C investment to minimize the tax impact. Further, you can invest UpTo INR 50000 p.a. in NPS.

Please feel free to call/revert in case of any doubts

Thanks and Regards
Abhishek Dugar
CA, CS, B.Com
Caabhishekdugar@gmail.com
Abhishek Dugar
CA, Mumbai
1874 Answers
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Yes. It is fully taxable
Shyam Sunder Modani
CA, Hyderabad
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Dear Sir,

Yes Interest received from Builder shall be taxable under the head Income from Other Sources.

Trust this clarifies your query. 

Feel free to call back/ get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP.
Rohit R Sharma
CA, Mumbai
1680 Answers
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