Poonawalla fincorps
Poonawalla fincorps

Advance forfeitured; capital asset

This query is : Resolved 

14 March 2014 COA:5 lac (1990)
Advance recv and forfeited: 10 lacs (2014)
What shall be its treatment in B/S as per income tax ?

18 March 2014 1. Treatment in books of accounts and as per Income Tax will be separate.

2. In books of accounts, credit capital account (in case of individual or firm).

3. As per Income Tax Act, the forfeited amount is reduced from the cost of acquisition and any excess of forfeited amount over cost of acquisition is a capital receipt NOT taxable.



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries