Amount forfeited in relation to immovable property



an individual purchased a property and paid down payment. later on surrender the title and the advance payment forfeited. what will be the treatment of amount forfeited ?

 
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it can ce adjusted with the cost of orginal property

 
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I am asking from the point of view of Ind whose amount get forfieted
 
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Student CA Final

No treatment for buyer... No capital loss or revenue loss is allowed under it act... It doesn't amount to relinquishment of right hence no capital loss
 
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okie @ divakar..
so how it will be treated while preparing books of accounts
 
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I think may be it is dead loss
correct me if I'm wrong @ divakar
 
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Student CA Final

Advance paid for commercial buildings and later it is forfeited it is not allowed as revenue loss
 
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Student CA Final

Hmmm... Disallow in profit and loss account
 
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I am not sure Bt It will consider as like penalty for individual for breach of contract. And we don't get any benefits for penalties.
 
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Student CA Final

here find treatment in the hands of buyer



Attached File : 1440160 20171207161419 screenshot 20171207 130632.pdf downloaded 11 times
 
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