Capital gain

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Rahul (Querist)
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19 February 2014 I have purchased a residential land 10 years before for 8 lacs.

I have enter into an agreement to sell the above property with someone for Rs.45 lacs and i received advance payment of rs.12 lacs.

The purchase had not paid the remaining amount and I have forfieted the above Rs.12 lacs.

Now will Rs. 4 lacs (12-8) will be taxable to me as capital gain????

Nikhil Kaushik

Nikhil Kaushik (Expert)
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24 February 2014 no it wont be taxable in the current year. the taxability shall arise only when the asset is sold. whenever you shall sell the property, the cost shall be reduced by Rs 12 lakhs.

Rahul

Rahul (Querist)
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24 February 2014 but in present case my cost will be zero or (-4 lacs)

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