02 January 2009
Dear all, I need your help. Case is that we had to sale our property for 50 Lac and we had received Rs. 5 Lac as an advance. Now the party has cancelled the deal and accordingly we have forfeited the advance amount of Rs. 5 Lac. My entity is properietorship. I am taking depreciation on this property. My query is that whether Rs. 5 Lac is my Other sources Income or its capital receipt and will adjust whenever I will sale this property.
02 January 2009
Amount received and forfeited by the assessee will be reduced from the cost of acquisition from the asseesee when the property is sold.
02 January 2009
If the assessee did not sell the property in his life time , then that amount is neither taxable in his hands nor taxable in the hands of his legal heir.
CAclubindia
