I signed an MOU with a a contractor in 2013, for a house under a township scheme. The MOU that we signed included full payment at that time, with a provision of interest at a predefined % rate compounded quarterly if the he failed to give possession of the house within 36 months. No registration for the same was done. . Now, the 36 months have lapsed and the contractor has agreed to pay the amount back with agreed interest, but is insisting on a 10% TDS deduction on the interest amount. I want to know whether this amount is taxable or not.
Jan. 09, 2018