Law relating to receipt and forfeiture of earnest money

Last updated: 20 November 2020

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This document details the legal and tax implications surrounding the receipt and forfeiture of earnest money in property transactions. It explains how amendments to Section 51 and the introduction of Section 56(2)(ix) of the Income-tax Act have changed the taxability of forfeited amounts, shifting it from a reduction of acquisition cost to 'Income from other sources'. The guide is useful for individuals and businesses involved in real estate dealings, clarifying tax treatments for both buyers and sellers.

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TAX PROVISIONS RELATING TO RECEIPT AND FORFEITURE OF EARNEST MONEY #pdf

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Submitted by CA.R.S.KALRA · Posted 20 November 2020 · Other files by CA.R.S.KALRA · Report

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