What are the financial and income tax consequences that follow, if a property deal is called off or cancelled? We examine Property deals need not always culminate in the execution and registration of an agreement. Sometimes, the deal may not go through and may be abandoned halfway, after the payment of token money or even after some of the payments have been made. The deal may be cancelled by either the seller or the buyer, for any reason. Treatment of token money under the income tax laws, if a property deal…