Capital gains
K. P.S (34 Points)
09 October 2019
CA Dhruva Kalamanji
(Chartered Accountant )
(1996 Points)
Replied 09 October 2019
Kapadia Pravin
(17249 Points)
Replied 10 October 2019
K. P.S
(34 Points)
Replied 10 October 2019
Kapadia Pravin
(17249 Points)
Replied 10 October 2019
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 11 October 2019
1. Receipt of advance money forfeited is dealt in sec 56(2)(ix), where the amount received towards sale of the capital asset and subsequently got forfeited then the same will be subject to tax under the head Income from other sources in the year of receipt.
2. As per sec 51, if the advance amount is already taxed then the same will not go down to decrease the cost of acquisition at the time of sale of the property.
3. In your case, Rs. 50,000 received will be taxable in the year of receipt as IOS. Once, you have paid tax on the same, again it need not be reduced from your cost of acquisition.
Please correct me if the above solution has an alternative view.
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