Income tax on forfeiture of advance money
Dhana Sai (244 Points)
28 August 2024
whether forfeiture of advance money relating to rural agricultural land is taxable or not..
3 Replies
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177896 Points)
Replied 31 August 2024
ITO may apply the provision in the act...
Provisions of Sec. 56(2)(ix) [applicable if advance money received and retained on or after 1.04.2014] Income from other sources. 56.(2) In particular, and without prejudice to the generality of the provisions of sub-section (1), the following incomes, shall be chargeable to income-tax under the head “Income from other sources”, namely :— ix) any sum of money received as an advance or otherwise in the course of negotiations for transfer of a capital asset, if,— (a) such sum is forfeited; and (b) the negotiations do not result in transfer of such capital asset;
Though assessee can take advantage of the asset being rural agricultural land.
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