Forfeiture of earnest money
This query is : Open
22 November 2012
Is earnest money forfeited loss under the head capital gain for buyer on default of buyer
22 November 2012
Where the advance given by the prospective buyer has been forfeited by the seller then such amount is a capital loss for the buyer which has no treatment (a dead loss).
This is because he did NOT acquire any capital asset by giving advance. On forfeiture it CANNOT be said that the assessee has transferred any capital asset.
Also it cannot be said that he has acquired any capital asset against such amount.
Accordingly such amount will NOT have any treatment.
This is because he did NOT acquire any capital asset by giving advance. On forfeiture it CANNOT be said that the assessee has transferred any capital asset.
Also it cannot be said that he has acquired any capital asset against such amount.
Accordingly such amount will NOT have any treatment.
Message likes :
1 times
23 November 2012
Is there any recent case law or notification for it apart from CIT vs Sterling Investment Corporation Ltd (1980) 123 ITR 441.
01 June 2017
TDS Payable A/c
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Pass word to open justification report for Q1 for FY 2026-27
- Scrutiny and reopening of past returns
- Section 194JA & JB Income which ITR Form to use
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Building tax payment deduction in rental Income
- Upload Level ValidationITR3Category of Defect B/D
- Booth for sales promotion
- GST ON TRAVELLING BILLS
- F & O PROFIT REPORTING FOR AY 2026-27
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
