Capital gain
This query is : Resolved
29 September 2014
MR A ENTERS INTO AGREEMENT WITH MR B FOR SALE OF ONE BUILDING OF RS. 500000 AND FOR THAT MR B PAYS IN ADVANCE OF RS. 40000 AND PROMISE TO PAY REAMING AMOUNT IN 5 EQUAL MONTHLY INSTALLMENT.
HOWEVER, DUE TO SOME REASON MR B NOT PAID EVEN A SINGLE INSTALLMENT . THAT'S MR A FORFEITED AMOUNT WHICH WAS RECEIVED IN ADVANCE AS PER SEC 51.
MY DOUBT IS : ADVANCE MONEY PAID OF RS . 40000 IS ALLOWED AS A DEDUCTION FROM MR B POINT OF VIEW.
HOWEVER, DUE TO SOME REASON MR B NOT PAID EVEN A SINGLE INSTALLMENT . THAT'S MR A FORFEITED AMOUNT WHICH WAS RECEIVED IN ADVANCE AS PER SEC 51.
MY DOUBT IS : ADVANCE MONEY PAID OF RS . 40000 IS ALLOWED AS A DEDUCTION FROM MR B POINT OF VIEW.
29 September 2014
This will not be allowed as deduction from Mr. B being advance paid for purchase of building.
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