How will auction close-out compensation be taxed?

Taxation
1

I recently tried to purchase a bond and it was short delivered. In the end, its auction was a close-out and I received the 20% penalty amount over and above the initial amount -

Short-Delivery
Short-Delivery1472×483 29.9 KB

I was just curious about a thing. Would the compensation amount be taxed as STCG or at slab rates or would it be exempt from taxes?

2

@San78 Can you.

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3

Taxable as Income from Other Sources @ slab rates.

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