One Of My friend booked a flat in NOIDA by paying booking money and a home loan was approved on it in 2000. He paid the EMI's of Home loan regularly. Latar due to court order the construction was stopped. Now the Builder asked for increased price so he cancelled the booking. The builder paid the money received & some Interest after deducting TDS on such Interest. He had not taken any deduction on interest on home loan or principal when he paid the EMI's earlier. What is Tax implication on such sum received as part is amount paid & part is interest thereon? Also interest was paid on such amount as part of EMI.
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Interest recived on cancellation of partly paid home loan
Replies (1)
I think it will come under income from other sources. It is not supposed to be an income in the hands of the assessee because it was an expense incurred which was returned back, however, the builder has deducted TDS on interest, and in order to claim TDS, this amount is required to be shown in the ITR.
But wait for others to reply.
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