Advance forfeitured; capital asset
This query is : Resolved
14 March 2014
COA:5 lac (1990)
Advance recv and forfeited: 10 lacs (2014)
What shall be its treatment in B/S as per income tax ?
Advance recv and forfeited: 10 lacs (2014)
What shall be its treatment in B/S as per income tax ?
18 March 2014
1. Treatment in books of accounts and as per Income Tax will be separate.
2. In books of accounts, credit capital account (in case of individual or firm).
3. As per Income Tax Act, the forfeited amount is reduced from the cost of acquisition and any excess of forfeited amount over cost of acquisition is a capital receipt NOT taxable.
2. In books of accounts, credit capital account (in case of individual or firm).
3. As per Income Tax Act, the forfeited amount is reduced from the cost of acquisition and any excess of forfeited amount over cost of acquisition is a capital receipt NOT taxable.
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