Aman entered into an agreement with Brij for sale of a building for ₹ 20 lakh in June, 2019. 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 ac-quisition
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:D
Aman entered into an agreement with Brij for sale of a building for ₹ 20 lakh in June, 2019. 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 ac-quisition 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’