hello everyone,
plz solve the following quary on capital gain
indexed cost of property : 2,00,000/-
sale agreement for the above mentioned property50,00,000/- and received token money of5,00,000/-
after ten days token money forfeited by the seller because of non-execution of agreement
now tell me,
my revised cost is 2,00,000/- - 2,00,000/- = nil
but balance3,00,000/- ka kya hoga.... is it taxable or not ?
if yes, in which head (and also refer the section or case name)
reply soon
| Originally posted by : lucky | ||
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hello everyone, plz solve the following quary on capital gain indexed cost of property : 2,00,000/- sale agreement for the above mentioned property Rs. 50,00,000/- and received token money of Rs. 5,00,000/- after ten days token money forfeited by the seller because of non-execution of agreement now tell me, my revised cost is 2,00,000/- - 2,00,000/- = nil but balance Rs. 3,00,000/- ka kya hoga.... is it taxable or not ? if yes, in which head (and also refer the section or case name) reply soon |
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forefeiture amount is not your cost of property but it will be get taxed in "income from other sources" u cant set off the property cost from it .
Yes Mr. U S Sharma is right
Dear Dheraj,
If any income arises from any other sources other than salary, BP, Capital Gain and HP Income should be taxable under the head of other sources and also allowed any expenditure against it to earn such income.
| Originally posted by : vijay korgaonkar | ||
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as your case advance money recd is more than indexed cost of acquisition200000/- so500000/- less200000/- and balance 300000/- shall be capital receipt and not taxable [Travancore Rubber & Tea Co.Ltd v CIT (2000) 243 ITR 158 (SC)] SECTION 51 TREATMENT OF ADVANCE MONEY RECD |
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read the query carefully sir
advance is forefieted
| Originally posted by : vijay korgaonkar | ||
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as your case advance money recd is more than indexed cost of acquisition200000/- so500000/- less200000/- and balance 300000/- shall be capital receipt and not taxable [Travancore Rubber & Tea Co.Ltd v CIT (2000) 243 ITR 158 (SC)] SECTION 51 TREATMENT OF ADVANCE MONEY RECD |
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MR. dheeraj , Vijay korgaonkar is 100% right.
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