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08 November 2010 When advance payment of Rs. 1,00,000/- made for land by B to A and the same has been forfeited by the A of that land.

what the tax treatment in hand of A and B

08 November 2010 Advance money received.

51. Where any capital asset was on any previous occasion the subject of negotiations for its transfer, any advance or other money80 received and retained by the assessee in respect of such negotiations shall be deducted from the cost for which the asset was acquired or the written down value or the fair market value, as the case may be, in computing the cost of acquisition.

08 November 2010 Thanx but what would be in case of buyer (Whose payment has been forefeited) what would be tax treatment in his hand


08 November 2010 No tax on the buyer and in my view no deduction also allowable of the loss to the buyer.

08 November 2010 It is a capital reciept, not taxable in the hands of the recipient. It is also not allowable to the payer.



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