Aman entered into an agreement with Brij for sale of a building for ₹20 lakh in June, 2014. Aman received advance of ₹2 lakh. Subsequently, the agreement was cancelled and Aman forfeited the advance money. The advance mo

CS Executive · Tax Laws and Practice · PYQS · December 2015
Aman entered into an agreement with Brij for sale of a building for ₹20 lakh in June, 2014. Aman received advance of ₹2 lakh. Subsequently, the agreement was cancelled and Aman forfeited the advance money. The advance money is
(A) To be reduced from the cost of acquisition
(B) To be reduced from indexed cost of acquisition
(C) Taxable as capital gains
(D) Taxable as income under the head 'income from other sources'.

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Income Tax Act, 1961

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