Interest received from builder

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neeraj pandey (Querist)
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05 July 2013 One of my client received interest from builder of Rs. 17,31,507/- on a property on which my client invested in 2005 with amount of Rs. 25,00,000/- , he received total amount plus interest in 2012 , does this amount received in 2012 as interest will be taxed according to income from other sources or we can take benefit of long term capital gain

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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05 July 2013 U have not mentioned for what purpose ur client rec 25 lakhs?
is it refund or sale of property?

neeraj pandey

neeraj pandey (Querist)
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05 July 2013 25 LAKHS he invested in 2005 for the property

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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05 July 2013 so if its not recieved for sale of property then no capital gain tax is attracted & if it is refund then capital amount is refunded not taxable

neeraj pandey

neeraj pandey (Querist)
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15 July 2013 He received total rs.42,31,507/- ( 2500000 he invested in property) as builder doesn't not deliver the property so he gives 17,31,507/- as interest on rs. 25,00,000/-. builder already deducted tds on 17,31,507/- @ 10%, my query is whether this income of interest can be calculated in capital gain .