Capital Gain

This query is : Resolved

anil (Querist)
Follow

11 January 2011 sir / Madam

My client had entered into an agreement on 10.02.2008 for purchase of land & paid an amount of Rs.500,000 as a part cosideration. on 15.10.2010 the said agreement has cancelled & the only Rs.2,50,000 has been received towards cancellation of an agreement to my client as he had already paid an part consideration. i am confused that whether it taxable under Capital or Not. Or any other treatment is required.

Guest

Guest (Expert)

11 January 2011 If I could understood, there is loss of your client. Then, where is question of taxable capital gain ? Please clarify your query.

anil

anil (Querist)
Follow

11 January 2011 thank u sir....
but i want to say that if my client receives more than what he had already paid, then will he is eligible for capital gain tax

Guest

Guest (Expert)

11 January 2011 It will be taxable as STCG as it may be a matter of release of right to an asset.

Message likes : 1 times

anil

anil (Querist)
Follow

11 January 2011 thank u so much sir...

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