Advancemoney forfeited

This query is : Resolved

pawan (Querist)
Follow

08 August 2011 Advancemoney of Rs. 1.25 crores received for the land valuing (Cost Rs. 1.00 crores) Market value Rs. 2.00 crores and lateron forfeited. What is the treatment of Forfeited amount of Rs. 1.25 crores.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

08 August 2011 In case of advance received and forfeited
the entire amount of 1.25 crore will be tax free. But when in future the land will be sold its Cost of acquisition will be nil.
As such entire sales consideration will be treated as LTCG( if the asset is LT)

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

08 August 2011 As per section 51 of the Income tax Act,1961, advance money received on account of sale of a capital asset and which has been subsequently forfeited, the said amount should be reduced from the cost (fair market value if the land is purchased before 1/4/1981) of that particular capital asset.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

jaspreet sidana

Navneet Pratap Singh

AJAY Kumar Agrawal

office docs

Manoj Sharma

Subscribe Now

Advancemoney forfeited

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANT

GST CONSULTANCY

Manager- Finance and Compliance

CA Final

Accountant

Senior Executive