RETURNING TOKEN AMOUNT

Querist : Anonymous (Querist) 24 October 2010 This query is : Resolved
WE HAD PLANNED TO SALE OUR ANCESTRAL PROPERTY FEW MONTHS BACK. WE HAD ALSO RECEIVED A TOKEN AMOUNT OF RS.ONE LAKH FROM THE PURCHASER. HOWEVER THERE WAS A DELAY IN ENTERING OUR NAMES IN THE SOCIETIES REGISTER AND THE DEAL WAS CANCELLED. THE TOKEN WAS RECEIVED BY CHEQUE WITH THE ACKNOWLEDGEMENT ON PLANE PAPER WITH REVENUE STAMP. WE HAVE RETURNED THE TOKEN AMOUNT. BUT WE HAVE GIVEN THE CHEQUE TO THE PURCHASER FROM ANOTHER BANK AND NOT FROM THE BANK IN WITH THE TOKEN AMOUNT CHEQUE WAS DEPOSITED. IS IT OK FROM TAXATION POINT OF VIEW?
PLEASE GUIDE US.

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adv. rajeev ( rajoo ) (Expert) 24 October 2010
No problem. There is no bar to issue any cheque. It wont create any taxation problem. Get the receipt from the purchaser for the receipt of token money back.