TMI BlogSection 51 - Treatment of Advance Money receivedX X X X Extracts X X X X X X X X Extracts X X X X ..... from The cost for which the asset was acquired or The Fair Market Value of the asset The WDV in case of depreciable assets as the case may be, in computing the cost of acquisition. Advance Money Forfeited by Seller on or after 01.04.2014 As per Sec. 56(2)(ix) Any sum of money received as an advance or otherwise in the course of negotiations for transfer of a capital asset, if, such sum is forfeite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld not be allowed to be claimed as a 'Capital Loss'. If the seller fails to honor the deal and pays back the buyer the advance as well as some amount because of failure to dishonor the deal, this amount would not be treated as Capital Gain because it amounts to relinquishment of a right by a buyer. The amount forfeited which was paid for purchase of a Commercial Building will not be regar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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