Booked flat in 2013, paid installments until 2018 from NRE account. Construction stopped, UP RERA court ordered builder to pay including compensation in the form of interest. Builder failed to pay, UP RERA recovered the money from builder and deposited into my account, principal around 57L, interest around 37L. Is the interest taxable?
As per this article , "When a buyer books and flat and then eventually cancels it, but benefits by receiving a higher amount than he initially paid from the builder, the extra money will be treated as capital gains in the tax parlance. This was laid by the Mumbai Bench of the Income Tax Appellate Tribunal (ITAT). The tribunal also made it clear that the excess income thus earned will not be treated as long term capitals gains and be treated as a tax-free income, unless the holding period conditions and other conditions are satisfied."
Does this mean it's not taxable?