Mr Y has entered into an agreement of sale on 2nd March 2015 and received advance of Rs 1 crore. Total sales value is 8 crore
the question is whether this 1crore is liable to tax in the FY 2014-15?? whether there is any capital gain?? if there is any case law dealing such situation ???
30 May 2015
But sir, it is seen that advance received is not taxable only when, 1. no agreement is made and 2. possession is not transferred. Here agreement is made before the end of the financial year. then is it taxable?
30 May 2015
capital gain arised when there is a transfer of capital assets is done and in this case u recieved only advanve hence not taxable as capital till there is transfer of asset.
CAclubindia
