Interest on delayed sale consideration

Dear All,

My Company has executed sale agreement for disposal of property 3 months before for Rs. 118 Crores. However there is delay in payment by other party. So we are charging 12.5% interest on the consideration.

Now my query is that interest what i am receiving from other party ... shall i consider it as interest (i.e. income from other sources) or should it be conidered as a part of my sale consideration (i.e. Capital gain)

An early reply is highly appreciated.

 

With regards

Shweta Maheshwari

Replies (3)
INTEREST ON DELAY PAYMENT OF SALES CONSIDERATION OF GOODS IS YOUR BUSINESS INCOME. INTEREST ON DELAY PAYMENT OF SALES CONSIDERATION OF FIXED ASSETS IS YOUR INCOME FROM OTHER SOURCES OK CA NARENDRA KHANDELWAL

Any other response..

It would be Income from Other Source.

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