Mr. P, my client, made an advance payment of Rs 604,310 towards a property in the year 2005 to Mr. X and entered into an agreement. However, the agreement never came to fruition. Recently, on 07-01-2023, Mr. X, the property owner, sold the property to another individual, Mr. Y. Interestingly, despite the initial agreement not materializing, Mr. P received Rs. 35,00,000 from Mr. Y as a result of his initial advance payment.
What is the tax implications for Mr. P?
Whether the agreement of Mr X with builder was registered?
Whether the payment was made by Banking channel?
1. Yes sir, the agreement was registered.
2. ₹35 Lakhs was received through Banking Channel.
You can declare the income under Capital Gains, with indexation.
It is the gain over rights over a property.
Thank you very much sir.
You are welcome.
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