Can anyone plz explain the concept of Sec 51 ie Treatment of Advance Money recieved by the assesse?
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Plz explain sec 51
Replies (1)
Section 51 of the Income-tax Act, 1961 provides that any advance forfeitedby the seller of a property is deductible from the cost of the asset.
Theeffect of this provision is that subsequently when the same asset is sold,
a larger amount becomes taxable as capital gains in view of the original costbeing reduced to the extent of the amount forfeited.
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