Capital Gain

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anil (Querist)
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11 January 2011 sir / Madam

My client had entered into an agreement on 10.02.2008 for purchase of land & paid an amount of Rs.500,000 as a part cosideration. on 15.10.2010 the said agreement has cancelled & the only Rs.2,50,000 has been received towards cancellation of an agreement to my client as he had already paid an part consideration. i am confused that whether it taxable under Capital or Not. Or any other treatment is required.

Guest

Guest (Expert)

11 January 2011 If I could understood, there is loss of your client. Then, where is question of taxable capital gain ? Please clarify your query.

anil

anil (Querist)
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11 January 2011 thank u sir....
but i want to say that if my client receives more than what he had already paid, then will he is eligible for capital gain tax

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Guest

Guest (Expert)

11 January 2011 It will be taxable as STCG as it may be a matter of release of right to an asset.

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anil

anil (Querist)
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11 January 2011 thank u so much sir...