Avinash G (CA Student) (137 Points)
30 July 2023Mr. 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?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(163109 Points)
Replied 31 July 2023
Whether the agreement of Mr X with builder was registered?
Whether the payment was made by Banking channel?
Avinash G
(CA Student)
(137 Points)
Replied 31 July 2023
1. Yes sir, the agreement was registered.
2. ₹35 Lakhs was received through Banking Channel.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(163109 Points)
Replied 31 July 2023
You can declare the income under Capital Gains, with indexation.
It is the gain over rights over a property.
sabyasachi mukherjee
(26857 Points)
Replied 01 August 2023
CAclubindia
