Interest on compensation or enhanced - (New) Section 92(2)(i) / (Old) Section 56(2)(viii)

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....n compensation or enhanced compensation. Unlike the principal amount of compensation which is taxable under head of Capital Gain, the interest component is taxable under head of Income from Other Sources. Year of Taxability [ Section 278(1) ] • This section applies specifically to taxability of interest received under section 92(2)(i) referred to in Section 278(1), w....

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....n." It deems the income to belong to the year of receipt, regardless of when it was actually earned.  • This is an application of the Principal of Specialia generalibus derogant- special provisions under Section 92(2(i) prevail over general provisions under Section 276. Deduction [ Section 93(1)(f) ] • Deduction allowed 50% deduction of interes....