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Capital gain
What is treatment of forfeiture of cosideration on failure to pay remaining amount on sale of capital asset? I want to know treatment in the year of forfeiture.
Replies (3)
W.e.f 1 apr 14, any amount forfeited will be taxed as IFOS..
Its sec 51 which states that amount forfeited before 1.04.2014 is deducted from cost of capital assets and on and after 1.04.2014 it is taxed under IOS head
Finance Act 2014, brought an amendment to this issue. You need to check the date of receipt of the forfeiture amount. If its on or after 01-04-2014 then, its Income from Other Sources. If its received prior to that, it will reduced from cost of acquisition.
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