Mr. Parkash, a resident Indian aged 61 years, purchased a shop for 15 lakh in November, 2004. Registration and other expenses were 12% of the cost.…

Mr. Parkash, a resident Indian aged 61 years, purchased a shop for 15 lakh in November, 2004. Registration and other expenses were 12% of the cost. He entered into an agreement for the sale of shop to Mrs. Mani in January 2014. The sale consideration was fixed at 20 lakh. Mr. Parkash received 5 lakh as advance on that date by executing an agreement. However, in February 2014, due to failure on the part of Mrs. Mani, the said negotiation could not materialize and hence, the said amount of advance was forfeited by Mr. Parkash. Mr. Parkash entered into another agreement in January 2024 for the sale of this shop to Mr. Madan at 25 lakh and received an advance of 8 lakh but on 15th April, 2024, Mr. Madan denied to complete the agreement due to non-availability of sufficient funds and Mr. Parkash forfeited and retained the advance as per the agreement on that date. Finally, Mr. Parkash sold this shop to Mr. Mohan on 23rd June, 2024 for 45 lakh. Further, he has deposited 5 lakh out of the sale proceeds in a fixed deposit for 5 years with post office and earned interest of 26,700 (gross) on such FDR during the previous year 2024-25. He has opted to shift out of the default taxation regime under section 115BAC(1A) of Income-tax Act, 1961 for the assessment year 2025-26. (Cost inflation index for F.Y. 2004-05: 113, F.Y. 2013-14: 220, F.Y. 2023-24: 348 and F.Y. 2024-25: 363)