banner_ad

Suggest me the correct treatment

Others 439 views 2 replies

Dear Colleagues,

Your suggestions required on the following.

Lets say a person has a property of Rs. 5 Lacs in his Balance Sheet. If the same is sold to other person for Rs. 25 Lacs. Now if the person receives the payment of Rs. 10 Lacs & the purchaser is not able to make any further payments. Rs. 10 Lacs is now forfeited by the seller. The question is what should be the treatment of this Rs. 10 Lacs? Please mention the provision & case law if you cite. Also, tell me the treatment if the same is sold for 7 Lacs?

 

Thanks in Advance

Replies (2)

friend, the amout forfieted will be deducted from the cost of acquisition of property as a result the amount of property will become nil and the excess balance will be taxable at a higher slab rate of 30%. Next time when the property will be sold the cost of acquisition will be nil and tax be computed accordingly.

no...he is wrong

cost will be reduced to nil nd balance 5 lakh will be a capital receipt not taxable


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details
Company
16 May 2026
Account & Audit Asst

RAHUL KHANDEBHARAD & ASSOCIATES

Nashik

B.Com

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details