My party is filling ITR 1 having income from salary only. He sold Property in cash which is more than 20000/- now the AC is saying I will treat the advance received against property as deposits and treat it as a income. Is there any case law regarding this? According to me it cant fall u/s 40A3 and u/s 269ss it says about deposits or loan only and this is not deposit nether loan.
Please help me and post your answer and please forward the same on my id sudheerpareek @ gmail.com
thanking you
Well if he has sold property, you have to compute capital gain.
If the cash was received but property was not sold, it is not income. It will go to reduce the cost of acquisition of the asset as per section 51.
If he has accepted any non-refundable security deposit for a let out house from the tenant, it becomes part of actual rent for computing the income from house property.
I posted the three alternatives facing u.. cos i cant understand your situation - whether the property is transferred or he received advance against a property only.
CAclubindia
