Advance money received u/s 51

CA Mayank Tulsyan (B.Com(H), ACA) (274 Points)

14 August 2010  

cost of acquisition Rs 10000

Sale consideration Rs 20000

Advance money received From purchaser  Rs 15000... purchaser could not give rest of the amount so his advance was forfeited.


now. cost of acquisition for seller would be NIL... As the forfeited amount will be deducted from cost of acquisition.

MY DOUBT here is that what will be the treatment of the excess of forfeited amount over cost of acquisition (10000-15000)

i.e Rs 5000.. is it taxable?