Sir,
If I received some advance money and the sale registration fixed within 5 months of time.
But the buyer could not complete the transaction and noe he is not ready to buy and asking to refund the advance money.
Do I need to refund the advance money ?
2 Replies
Prem Kumar Chunduru
(165 Points)
Replied 30 September 2018
based on your agreement terms you can revoke. else as per contract act to refund.
CA CS NITIN MAHAJAN
(CA )
(273 Points)
Replied 01 October 2018
Section 51: Monies Forfeited Characterized with Income from Other Sources
In case the advance money received in course of negotiation for transfer of capital asset but the negotiations does not results in the transfer of such capital asset, accordingly the amount is forfeited, then as per amendment by finance act 2014 it would be chargeable to tax as income from other sources under section 56(2) (ix) in the income of receiver of advance money
In case the advance money received in course of negotiation for transfer of capital asset but the negotiations does not results in the transfer of such capital asset, accordingly the amount is forfeited, then as per amendment by finance act 2014 it would be chargeable to tax as income from other sources under section 56(2) (ix) in the income of receiver of advance money
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