How is money withdrawn when the property deal is canceled?

Property agreements do not always have to end in the execution and registration of an agreement. Sometimes, the agreement can not be made and it can be left after paying half-a-pound or even after some payment has been made. money withdrawn agreement can be canceled by the seller or the buyer for any reason.

If the property agreement is canceled, then the treatment of symbolic wealth according to income tax laws

In the case of proposals for the purchase of the real estate, the buyer typically pays a certain amount of money withdrawn from of symbolic wealth, when other terms and conditions agree to transfer the property. The amount of indicative wealth may vary, only from one percent of the value of the property until token.

If the seller withdraws from her commitment to selling her property, then there are no immediate financial implications, except that the buyer has the right to file a claim for a specific performance in the courts of law.

If the buyer withdraws from the agreement, then the seller money withdrawn has the right to leave the symbolic money paid.

In relation to such lost symbolic money, the buyer can not claim any income tax benefits because it is considered as a loss of capital in accordance with tax laws.

However, anticipated money/cash which becomes the income of the seller in the year in which the transaction is canceled.
Tax is levied on such lost guarantee amount under

the head “income from other sources”, not under “capital gains”, even if the income is in relation to any capital asset. Before the amendment to the law in 2014, the cost of the acquisition of the asset in which it was received, in that year the property, which is the object which was reimbursed, was to be deducted. The deal was sold.

Payment of stamp duty refund
Typically, for all property transactions, the buyer has to pay a fixed amount in the form of stamp duty. It is a percentage of the market value of a certain amount or asset. You will also have to pay a registration fee for the registration of the agreement.

Stamp duty and registration fees are prescribed by the State Government. Therefore, the rules for reimbursement of paid stamp duty for property transactions will vary among different states. You must pay stamp duty before the document is executed.

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