No TDS not on Payment of interest for delay in construction of Flats

CIT Vs H.P. Housing Board (Himachal Pradesh High Court) In this legal analysis, understand if interest paid by H.P. Housing Board is considered damages or interest under the Income-tax Act. In the case in hand it stands proved that in case the houses were ready within the stipulated period the Board would not be liable to pay interest. When construction of a house is delayed there can be escalation in the cost of construction. The allottee looses the right to use the house and is deprived of the rental income from such house. He is also deprived of the right of living in his own house. In thes...