I had given booking amount to a builder for a flat in Mumbai. Even after 1.5 years he had not started the construction, i asked him for refund of my booking amount. The Builder gave me my principal amount + interest of Rs. 162,000/-. I want to know the tax implication for this interest amount. If I invest this interest amount in a NA plot in my native place will i get tax exemption for the same. Regards,
1 Answers
The interest amount would be taxable similar to bank interest. This would be added to your taxable yearly income and would be taxed as per slab rates.
As this is not long term capital gains, no income tax exemption would be available.
Related