If any individual take advance from other individual for sale of land but at end of f.y. land is not sale. is the advance comes in income?

Hi Mr Narayan,

Yes this will be taxable and will be reported under Income from other sources.

Thanks!

Mr. Narayan

I am assuming following two situations:

1. Agreement forfeited i.e Agreement cancelled, in this case- if the advance amount received and not refundable, than the advance amount should be taxed under the head Income from other source
2. Agreement is continuing and will be executed in the next year, than the amount should not taxed in the year of advance received

If any contradictory view, please let us know