Salaried person sold property

As the sale is taking place now you will have to show such income in the ITR next year i.e. while filing return of income for FY 2018-19. You have just received a payment and I am assuming you have not executed any sale deed.

Also since you are saying that it is your ancestral property and therefore I would suggest you to get it's market value as at FY 2001-2002 because I am assuming that I would have been purchased before 2001 and so for calculating indexed cost of acquisition you need to get it's fair market value for FY 2001-2002.

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Thank you

Hi Karan,

- As you said deal is in progress and you are in the process of selling the property, you need to show the transaction at the time of filing next year ITR i.e. A.Y. 2019-20 assuming you received payment after 01.04.2018.

- As the property belongs to your grandfather, assuming it was purchased before 01.04.2000 so get the FMV of the property as on 01.04.2000 to save the capital gain tax.

- You need to file ITR-1 for current year ITR i.e. A.Y. 2018-19 if the total income is less than Rs.50 lacs.

Thanks

Hi Karan,

Hope you are doing well !

1.As mentioned by you that the deal is still in progress then you need to report this transaction in next year income tax filing i.e A.Y. 2019-20.

Assuming that you have not received any payment before 31st March 2018.

2.As this property is ancestral property , so may be it was purchased before 1st April 2000. You just need to get the FMV of the property as on 1st April 2000. Accordingly, we will advise you on capital gain working.

3.If the income is less than Rs 50 lakh then You need to file ITR 4 for current year i.e. A.Y. 2018-2019.

Thanks & Regards,

Payal Chhajed

Hello Karan,

Report this transaction in the income tax filing for FY 2018-19 i.e A.Y. 2019-20 since you have received payment In the current FY. Get the fair market value of the property done as on 01st Apr 2000 by a registered valuer as this is bought prior to 2000. You will get indexation benefit on this FMV and then the capital gains can be computed.

Regards,

Nikhil.

Hi,

It will be treated as your current year income i.e for FY 2018-19. You need to report the same in AY 2019-20.

For capital gain calculation, you need FMV of property as on 01.04.2000 assuming it was acquired on or before 01.04.2000.

You should file ITR 4 if the total income is not more than 50 lakh per year.

Hi

Capital gain tax to be paid on sale transaction in year of sale.

So declare it when deal get closed.

You can use ITR 2 for the same.

As & when deal complete you have to calculate LTCG on your & sister share & either pay or avail exemption u/s 54 as of now deal is in progress then only can show as advance for the deal

You don't need to show this amount anywhere in the return of income.

You will have to show capital gain in your return in the year in which sale is completed.

If the property has not been sold yet and only the advance amount has been received, there is no need to show that in Income Tax Return. The need to show the sale transaction will arise only when the deal will materialise. But i also suggest you to take advise of a tax consultant for the proper calculation of capital gains tax which may need to be paid in your transaction.

HI Karan

The sale of the property shall be liable to capital gain tax when it is sold i.e. when registration is done. So, as of now, when only advance is received, you need not show any details in the ITR.

Based on the above facts, you may use ITR 1.