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Forfieture of advance money

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Querist : Anonymous

Querist : Anonymous (Querist)

25 May 2013 if any person made a agreement of sale of house then is their any restriction on percentage of money forfeited. example if house is agreed to sale for 1 crore then can any one forfeiture advance money of 50 lac.
And,
is any other tax consequences other than under capital gain original cost is reduced,
like tax under income from other source, etc

CA Harish Suwalka

CA Harish Suwalka (Expert)
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25 May 2013 it was once used as a way to dryclean the money, but these days Govt and IT Dept are very tough on these types of bogus transaction,

if the forfieted advance is beyond market standards , which are 5-10%, than you are inviting trouble.

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