Compensation or Interest for Delay in Handing Over Flat is Not Taxable !

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compensation for delay in handing over flatsThe delay in handing over the flat is very common problem and as readers may have read recently  Supreme Court came on very heavily on some developer for delay in handing over the flat . As per the news report , builders are ordered to pay compensatory interest to buyers of flats . This post is dedicated to issue of taxation of such an interest which a builder gives to a person who booked the flat , but did not get the flat within days promised by the builder. The question is “whether the interest or compensation received by the buyer from by the builder for  delay in handing over the flat   is taxable receipt ?”

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