If x received advance of 50,000 against sale of property on 28/3/2014...this amt was forfeited on 2/4/2014....
In fy 17-18 he sold his property.
What will be the tax treatment of advance money forfeited ??
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capital gain advance money
Replies (6)
Though capital receipt, but advisable to offer for assessment under Income From Other Sources.....
As per my opinion in reference to section 56(1)(ix) Advance money forfeited was to be taxable under income from other sources in the year in which it was forfeited
but as per section 51 and 56(2)(ix) if advance is received and forfeited after 1/4/2014 ,then it will be charged under head ifos....
Here advance is received before 1/4/2014 and forfeited after 1/4/2014 . so what should be treatment of advance money
We consider the date of advance is received , if it is before 1-4-2014 deduct from COA and if it is after 1-4-2014 it wil be treated as IFOS.
Thank you
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