I had been allotted a plot by Lucknow Development authorities in 2005 and I have deposited Rs. 462000.00 Due to non development of area LDA not registered sale deed in my favour so far. Now I am going to sale the property to a person for Rs 3500000.00 on the basis of AGREEMENT OF SALE. And he is going to give full amount without SALE DEED of the plot. My question is that Whether I will be taxed this year OR when I will execute sale deed in favour of buyer which will take place at least two to three years.
Hi,
You will be taxed in this year (I.e. in the year when agreement to sell will be executed).
Further, you can claim exemption from capital gain if you invest the sale proceeds in another residential house or in eligible bonds subject to certain conditions.
Please let us know if you want more info about exemption.
First of all since you are not the registered owner of the land how will you sell it as you have mentioned LDA has not registered a deed in your name?
However if you are going to sell the land based on the agreement between you and LDA i.e. you are going to transfer your rights in a property then such capital gain will be taxed in the year when you transfer your rights by making a sale agreement. I don't think you will be able to make a sale deed as you are not the registered owner of such land.
Therefore according to my observation you will be taxed this year and you can exempt yourself from capital gain by investing such money in bonds specified under 54EC or in a residential flat mentioned under 54F.
You can also ask further query or can schedule a consultation for any further information.
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Thank you
Dear Sir,
Hope you are doing well !
Since sale deed will be executed in current year so it will taxed in this year only.
However, you can take the benefit of exemption u/s 54/54F/54EC.
Thanks & Regards,
Payal Chhajed
Hi,
It will be taxed in this year only.
Hi,
Since sale deed will be executed in current year so you will taxed in this year only. However, you can reinvest the capital gains in a residential house or in specified capital indexed bonds to save taxes. Hope that clarifies.
Regards,
Nikhil.
Hi,
- You will be taxable in the year when agreement to sale will be executed.
- Invest either in bonds or in residential house to claim exemption and save tax.
Thanks
As per capital gain liability transfer complete when all payment made or willing to made & Possession given so as per our view tax liability arise when these two condition fulfill
Hi
It will be taxed in year when Agreement to sale is executed.
