an individual purchased a property and paid down payment. later on surrender the title and the advance payment forfeited. what will be the treatment of amount forfeited ?
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Amount forfeited in relation to immovable property
Replies (14)
it can ce adjusted with the cost of orginal property
I am asking from the point of view of Ind whose amount get forfieted
No treatment for buyer... No capital loss or revenue loss is allowed under it act... It doesn't amount to relinquishment of right hence no capital loss
okie @ divakar..
so how it will be treated while preparing books of accounts
so how it will be treated while preparing books of accounts
I think may be it is dead loss
correct me if I'm wrong @ divakar
correct me if I'm wrong @ divakar
Advance paid for commercial buildings and later it is forfeited it is not allowed as revenue loss
Hmmm... Disallow in profit and loss account
I am not sure Bt It will consider as like penalty for individual for breach of contract. And we don't get any benefits for penalties.
here find treatment in the hands of buyer
I m glad @ divakar u find but I already know this 😊
further my question is if it is neither revenue loss nor capital loss then what would be the exact treatment of it.?
further my question is if it is neither revenue loss nor capital loss then what would be the exact treatment of it.?
Disallowed in pl ac... Already told.. Dead loss
Amount Forfieted by Seller will be taxable under head income from other sources and no treatment or expenditure allowed in hands of buyer.
thank you @ jaykishan and @ divakar
@ Neha mam welcome 😂😂😂
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