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Shady (Manager)     18 October 2017

Usage of earnest money [bayana]

Hi,

My father enetred into  sale agreement for our land with a buyer for around 10,000,000. The possesion was given to the buyer.The transaction was supposed to be completed within 1 year. However, he died during this period. The buyer started demanding more time. He deposited 60% of the money as advance with us.However, he is now not ready to pay full amount now citing various reasons. His payment cheques got bounced. As a result the sale deed has not been completed yet. s I am living abroad, I could not initiate legal proper legal proceeedings apart from sending notice regarding forfiet of advance. This deel is stuck around 8 years now.

My question is regarding usage of advance money. Are there any restrictions of using this money? 
I have partly gifted money abroad on my wife's name. Is that money taxable now.?



Learning

 2 Replies

manoj   18 October 2017

you dont have right to use earnest money, as per the supreme court guidelines the limitation for refund of earnerst money is explained.

manoj

advocate

8686159292 

sreemannarayana mallela   27 January 2018

as per it act if advance money forfeted it will deduct from cot of acquired so tax 54A it act1961

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