Capital gain
This query is : Resolved
11 March 2014
A sold land to B for Rs. 1 cr. and he got 50 L from B after this B was not able to fullfill A's conditions so A forfeited everything, land as well as money both are with A,
now A sold this land to C for Rs 1.25 Cr... on what amount A is liable to pay tax.. should he pay the tax on 50 L which he forfeited as well or just on 1.25 cr which is current sale amount.... lets take purchase price was jus Rs.1..
11 March 2014
Amount forfeited is REDUCED from the cost of acquisition.
Any excess of amount forfeited over cost of acquisition is a capital receipt which is NOT TAXABLE.
In this case, the cost of acquisition will become NIL and capital gain shall be computed accordingly.
Any excess of amount forfeited over cost of acquisition is a capital receipt which is NOT TAXABLE.
In this case, the cost of acquisition will become NIL and capital gain shall be computed accordingly.
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