Tax on interest received from builder after 10 years of booking

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 8 years ago in Income Tax

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