https://www.taxtmi.com/caselaws?id=208232 Interest received on enhanced compensation is taxable on receipt where the assessee follows no specific method of accounting, because the receipt is treated on cash system principles. The interest element on enhanced compensation partakes the character of compensation and is taxable under section 45(5)(b) of the Income-tax Act, 1961 in the year of receipt. Where such interest is assessed under the cash system, it also falls within section 56 as income from other sources. The stated legal position therefore confirms taxability in the year the amount is received. en-us Mon, 31 Jan 2011 00:00:00 +0530 Mon, 09 Jan 2012 09:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=208232 Interest received on enhanced compensation is taxable on receipt where the assessee follows no specific method of accounting, because the receipt is treated on cash system principles. The interest element on enhanced compensation partakes the character of compensation and is taxable under section 45(5)(b) of the Income-tax Act, 1961 in the year of receipt. Where such interest is assessed under the cash system, it also falls within section 56 as income from other sources. The stated legal position therefore confirms taxability in the year the amount is received. Case-Laws Income Tax Mon, 31 Jan 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=208232