Capital gain
This query is : Resolved
14 September 2012
As per the agreement..Seller forfiet the advance becoz purchaser refuses to purchase the property after giving advance.......
Wat treatment for purchaser??
Is it capital loss
Wat treatment for purchaser??
Is it capital loss
Amol S Joglekar
(Expert)
14 September 2012
If purchaser is a dealer in property, it can be REVENUE expenditure else what you suggested is correct... instead of LOSS it is expenditure.
Amol S Joglekar
(Expert)
14 September 2012
Capital receipt. (Taxable in the hands of seller)
14 September 2012
U r wrong....capital receipt is not taxable in the hand of seller........
Becoz no tranfer of property take place
Becoz no tranfer of property take place
Pankaj Gupta
(Expert)
14 September 2012
In the hands of seller this forfeited amount will be reduced from his cost of acquisition. Eg. Cost of acquisition in year 1995 was 5 lakhs and amount forfited in the year 2009 is 150000. Now his new cost of acquisition will be 350000. whenever he sells the land, indexed cost of acquisition of 350000 shall be calculated by considering year 1995 as base for calculation.
08 October 2012
yes u r ryt mr pankaj gupta....bt my real query is wat treatment for the purchaser........
Amol S Joglekar
(Expert)
08 October 2012
Your real query was answered in the first instance itself.....if purchaser is dealer in property, it can be REVENUE expenditure else what you suggested is correct... instead of LOSS it is expenditure.
Pankaj Gupta
(Expert)
09 October 2012
Purchaser will not be eligible to claim it as capital loss. In this case there is no relinquishment of a right in the asset, therefore no treatment under head capital gains. Bombay high court decided the same In case of sterling investment corporation ltd (1980).
10 October 2012
da reason for dis is....as seller is not liable to pay tax...... purchaser not entitled to any benefit
Pankaj Gupta
(Expert)
10 October 2012
Dear Abhishek, you should think twice before writing anything. You should not treat a person (mr Amol) in such harsh manner and that too that person who provide you with free advices.Even though you did not like his advice than also you should be thankful to him as he atleast tried to help you. Excuse me if I hurt your feelings.
10 October 2012
m not saying him in such a way.......i only said plz update ur knowledge....
above i said him u r wrong bt he is posting same cmnt again dats y i said
above i said him u r wrong bt he is posting same cmnt again dats y i said
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