Advance money forefeture sec 56 (2) (ix)

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  1. AJITH GEORGE

    AJITH GEORGE New Member

    it is clear that if Advance money recieved after 1-4-2014 it will be taxable in the head income from other sources in which year it is recieved..

    my question is is there any provision for advance money recieved before 1-4-14 to make taxable in the head income from other sourses.. or is it compulsory to reduce from the cost of aquisition or wdv or FMV as on 1.4.1981..
     
  2. sai tejesh(ca.final)

    sai tejesh(ca.final) Active Member

    Kindly take a note Ajith.
    Sale consideration received in advance is taxable under the head income from other sources in the year in which it was forfeited.Not in the year of receipt.

    'Something can be taxed only if assessee actually earns'..advance receipt is a kind of loan(liability).So this can't be taxed before 1.04.2014 and even after 01.04.2014.

    Yes,advance sale consideration received before 01.04.2014 and forfeited after 01.04.2014,shall be reduced from the cost of acquisition in the year in which transfer has took place.
     
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