https://www.taxtmi.com/forum/issue?id=1923 When a purchaser's contractual right in a booked flat is surrendered or the flat is sold shortly after possession, the add-on or sale proceeds are taxable as a transfer of a capital asset and normally treated as short-term capital gain if the booking/right is a short-term capital asset; if the flat was held as trading stock, receipts will instead be business income. An alternative characterization as interest yields different tax consequences. en-us Sat, 08 May 2010 18:16:42 +0530 Thu, 23 Jan 2025 15:58:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=1923 When a purchaser's contractual right in a booked flat is surrendered or the flat is sold shortly after possession, the add-on or sale proceeds are taxable as a transfer of a capital asset and normally treated as short-term capital gain if the booking/right is a short-term capital asset; if the flat was held as trading stock, receipts will instead be business income. An alternative characterization as interest yields different tax consequences. Discussion-Forum Income Tax Sat, 08 May 2010 18:16:42 +0530 https://www.taxtmi.com/forum/issue?id=1923