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Forefeited Income will be Business Income or IFOS?

Pankaj Arora (Learner) (3134 Points)

05 March 2020

Hi,

ABC Ltd is real estate company, company has forfeit some booking advances, my query is forfeited income will be taxable under PGBP or IFOS?

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4 Replies

Harendra Kumar (Tax Advisor ) (1326 Points)
Replied 05 March 2020

Yes, it is taxable under Income from other sources.

Kapadia Pravin (17249 Points)
Replied 05 March 2020

Since it is incidental and arising directly out of its real estate builder business and it's a regular happening in the builder line business,

Such forefeited amount will be under business income.

Pankaj Arora (Learner) (3134 Points)
Replied 05 March 2020

Thanks for reply

@ Mr Kapadia Pravin, if it will be taxable under PGBP, there will be no deduction allow against this forfeiture income, right?

MOHIT JOSHI (229 Points)
Replied 06 March 2020

Expenses can be claim under PGBP

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