Advance forfeited

147 views
User Avatar

1 Points Posted on 20 February 2020
why advance forfeited by previous owner is ignored while computing capital gain tax?
0 Reply Share Follow
On 20 February 2020 at 19:08 Report
Replies (2)
Quick Summary
When a buyer forfeits an advance payment because a deal falls through, this forfeited amount is treated as income for the seller. It is taxed under the 'income from other sources' category. Consequently, this forfeited advance is not considered when calculating capital gains tax.

User Avatar

PRACTICE
673 Points Posted on 20 February 2020
Because it is already chargeable to tax under section 51 under income from other sources
2 Reply
On 20 February 2020 at 21:29
User Avatar

17269 Points Posted on 23 February 2020
Advance forfeited as and when deal fails and buyer let go off advance payment then in that case such advance is deemed as Income and taxed in the hands of seller as income under sources.
Reply
On 23 February 2020 at 00:52

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topics :

  1. CA Fees deduction for non audit case allowed?
  2. 5th Letter PAN Mismatch with Surname issues still
  3. Criteria to hire an article
  4. Guidence requested for a Finance Professional with
  5. Expert Opinion Required – Form 140 Gross Amo
  6. WRONG TAX DEMAND - formal responses , rectificatio
  7. Foreign remittance
  8. Affordable Residential Flats in Gurgaon
  9. Manufacturing
  10. TAN REGISTRATION ON E-FILLING SITE

More recent discussions | Post

Related Topics :

Loading