https://www.taxtmi.com/manuals?id=923 Interest received on compensation or enhanced compensation is taxable under the head Income from Other Sources, while the principal compensation is governed separately under capital gains principles. Such interest is deemed taxable in the year of actual receipt, and this receipt-basis rule overrides the general accounting method for this specific income. A 50% deduction is allowed in respect of the interest so received, and the earlier law states the same treatment with no additional deduction permitted. en-us Tue, 18 Aug 2015 17:05:00 +0530 Sat, 09 May 2026 09:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/manuals?id=923 Interest received on compensation or enhanced compensation is taxable under the head Income from Other Sources, while the principal compensation is governed separately under capital gains principles. Such interest is deemed taxable in the year of actual receipt, and this receipt-basis rule overrides the general accounting method for this specific income. A 50% deduction is allowed in respect of the interest so received, and the earlier law states the same treatment with no additional deduction permitted. Manuals Income Tax Tue, 18 Aug 2015 17:05:00 +0530 https://www.taxtmi.com/manuals?id=923