Capital Gains Taxation: The Role of Advance Payments in Clause 81 of the Income Tax Bill, 2025 vs. Section 51 of the Income-tax Act, 1961

Advance money treatment: deduction from cost of acquisition barred where the advance was included in total income.

Clause 81 requires that advance money retained during negotiations for transfer of a capital asset be deducted from the cost of acquisition (original cost, written down value, or fair market value) but prohibits that deduction where the advance has already been included in the assessee's total income under the statutory provision referenced, aligning with Section 51's objective while differing in the cross references and raising compliance and interpretive issues.