plz. help
Mr. X (buyer) makes a contract with Mr.Y (seller) to purchase his land for Rs. 40L (40,00,000),
both were agreed on it. Mr. X paid earnest money(bayana) of Rs. 4L (4,00,000) and both party agreed that the remaining
amount will paid after 2 month.
After 2 months seller beach the contract and don't wants to sell land (due to increase in sale value), but agree to pay Rs. 6l
(6,00,000) in lieu of earnest money.
What is the treatment in Income ? Is sum received by Mr. X is taxable or not? If yes, under which head?
CAclubindia
