QUERY PCC TAX..

 

friends i have a problem pls help...

 

mr. A purchased a house on 1-4-09 for rs 1,00,000 on 11-11-09 he forfeited 10,000 from B... on 1-1-2010 he gifted this house to his son C .. on 1-2-2010 C forfeited 10,000 from D... on 1-3-2010 he sold to E for rs 2,00,000...

what is the tax implication for A and C...

Replies (4)

As there is no sale in respect of A, Hence in hand of A nothing will be taxable. For C, Cost of aquisition of house will be same as for previous owner, i.e. Rs. 1,00,000/-  As per section 51, If any advance money is forfeited by assessee himself then that money upto extent of cost will be deducted from cost. Balance amount if any will be treated as COA. and then Capital gain will be computed.

In respect of C, Capital Gain :-

Sales Consideration    Rs. 2,00,000

less : COA                      Rs.     90,000     [1,00,000-10,000(forfeited by C)]

                                      -------------------------

Capital Gain                  Rs. 1,10,000

dear sailesh ,

 

can u clarify my doubt.. 

whether amount forfeited by mr A will not be reduced from cost of Acqusition...

 

Yes. Amt. forfeited by Mr. A will not be reduced from COA. Because Section 51, Says only that amount of advance forfeited will reduce from COA which assessee (Mr. C) himself forfeited.

amount of consideration should reduced by the forfeited by the seller of the capital assets. amount forfeited by previous owner should not be reduced from the sale consideration

leave tension read it very carefully

 best of luck for u r exems

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
ARTICLESHIP 16 September 2026
CA Article Trainee

SR BAGAI & Co.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
17 September 2026
Chartered Accountant

Dass Gupta & Associates

Gurgaon

CA

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details