21 July 2014
As per finance Act, 2014, as per Section 56(2)(ix), It has been provided that "any sum of money received as an advance or otherwise in course of negotiation for transfer of capital asset - if 1. such sum is forfeited and 2.the negotiation does not result in transfer of such capital asset
then, such forfeited amount will be treated as ' Income from other Sources' "
Now, My question is , Does amount forfeited for Partly paid up shares shall be treated as ' Income form other Sources' as earlier is was treated as Capital Receipt and was not Taxable
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