Interest on enhanced compensation is taxable U/s. 56(2)(viii) read with section 145(B) ?

Interest on such enhanced compensation is taxable under the head " income from other sources " as per section 56 of the income tax act.

Section 145B of the income tax act deals with the taxation of interest on compensation or on enhanced compensation. As per section 145B, interest on copensation or enhanced compensation shall be taxable in the year in which it is received. 

So, if the enhanced compensation itself is exempt from capital tax (asuming it qualifies under a specific exemption like for compusory acquisition under section 10(37), the interst on enhanced compensation is taxable under section 56 (income from other sources).