Treatment of Advance money received

As per sec. 51 of IT Act, 1961 "...... any advance or other money received and retained  by the assessee in respect of such negotiations, shall be deducted from the cost for which the asset was acquired or the written down value or the fair market value,..........."

       From the above it may be observed that Cost of acquisition will be first reduced by the amount of advance money received and thereafter it will be indexed.

thanks...

Originally posted by : Sunshine
	thanks...

Your welcome jee.............

heyy i just wantd to enquire tht in my first attempt i gave only one ppr nd gt 61 in it...cudnt give d rest due to sum personal tragedy...the second time i cleared both d groups...will d tym wen i first gave only one ppr called an atttempt as i dint sit fr all d pprs..wat r d consequences?

Originally posted by : samarth
	heyy i just wantd to enquire tht in my first attempt i gave only one ppr nd gt 61 in it...cudnt give d rest due to sum personal tragedy...the second time i cleared both d groups...will d tym wen i first gave only one ppr called an atttempt as i dint sit fr all d pprs..wat r d consequences?

Whenever you fillup the examination form and gives at least even one paper it will counted as an attempt jee....................

Suggestion for CA Final Exam 2011(Paper 1:Financial Reporting)