ROI
This query is : Resolved
himanshu gupta
(Querist)
18 July 2011
there is one clause in agreement to sell is that till possession of property seller is paying ROI on advances paid by buyer to seller. whether it is treated as income from other sources or deduct it from total advances?
CA PARAS BAFNA
(Expert)
18 July 2011
Under an agreement to sale, advance money is paid by the buyer to seller, and in case the seller gives him interest on such advance, then it is- no doubt- income of the person who advanced money.
.
Now, interest remains deposited with the builder. He does not pay it to the buyer.
At the time of sale if he adjusts such interest in payment of installment/advance
then that will be called application of income.
.
So in my view, it is interest income.
.
Now, interest remains deposited with the builder. He does not pay it to the buyer.
At the time of sale if he adjusts such interest in payment of installment/advance
then that will be called application of income.
.
So in my view, it is interest income.
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