Advance money forfeited - (New) Section 92(2)(h) / (Old) Section 56(2)(ix)

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....a capital asset is chargeable to tax under the head "Income from Other Sources" if the following two conditions are met: • Forfeiture: The received sum is forfeited by the recipient. • Failed Transfer: The negotiations do not result in the actual transfer of the capital asset. Key Implications for Taxpayers • No Cost Adjustment: Once an amount is taxed und....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....m of money received as an advance or otherwise in the course of negotiations for transfer of a capital asset, if, • such sum is forfeited and • the negotiations do not result in the transfer of such capital asset shall be taxable in the hands of seller as Income from other sources." Key Implications for Taxpayers • Any advance or other money forfeited b....