Token money received not forfeited by 31st march
Deepak Parsai (Future CA) (623 Points)
31 March 2016Deepak Parsai (Future CA) (623 Points)
31 March 2016
Deepak Parsai
(Future CA)
(623 Points)
Replied 31 March 2016
How to treat token money received against house property sale agreement received to the one of legal representative out of 4, of deceased property owner.
Token money is not forfeited and also not intended to do so, but f.y. is going to close on 31st march and legal procedures for property name transfer is under process till now and sale will be executed only after it.
Now the question is -
Kya one of all legal representative jisne apne name se sale agreement par sign kar token money by bank liya keval use hi ispar tax dena hoga undet income from other source as at present he is not property owner ? Ya sabhi 3 legal representative me ise devide kar income show kare.?
??
The token money received is advance against sale and not income if the transfer has not yet taken place till the end of the year.
If 1 seller receives it out of 4 sellers on their behalf, he has to show in his balancesheet that he has taken it on behalf of other sellers.The next year in which the transfer takes place, this transaction will be taxed as capitral gains in the hands of all 4 sellers in the proportion of their sale amount.