Date of payment of capital gains

Hi

You'll be liable to capital gains in the year in which the property is registered in name of the buyer. 

Also if possession has been transferred in March 19 but registration has not been done, it will become taxable in FY 2018-19 only.

Hi,

- Usually gain is taxable in the year when the property gets registered.

OR

- Entire amount or substantial payment has been made and physical possession is given to the buyer. The year in which physical possession is given, gain will be taxable in that year.

In your case, it appears that physical possession will be transferred in 2019-20 then it would be taxable in 19-20 otherwise in 18-19.

 In any case you need to show advance receipt of Rs.30 lacs in your ITR to avoid notice in future.

Thanks

Since you have entered the sale in the current financial year you need to pay tax while filing the return for FY 2018-19.

So your capital gain would be around 18-20 lakh and there tax on such capital gain would be around 3.6-4 lakh i.e. 20% of capital gain amount and in such case you also need to pay advance tax by March otherwise you will also have to pay interest.

I would suggest you to either invest in another property or invest the capital gain amount in bonds mentioned u/s 54EC to save the entire tax.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Dear Sir,

Hope you are doing well !!

You will be liable to pay capital gain tax in FY 2018-19.

The capital gains accrued in the year the deal is executed unless it is in dispute.  It is merely the money which is pending to be received.  Hence, the sale needs to be reported for year ended March 2019.  Also, as the money is receivd by you before filing the return, it has completed and hence there is no doubt that transaction pertains to year ended March 2019.  Also, kindly factor the advance tax payments after considering the TDS done by buyer.

Hi

Transaction to be reported in year of sale..

I advise to report in March 2019 itself.

Or you can arrange to defer the transaction in April 19 so that it can be reported in next year.

Hope it help

Dear Sir,

It should be taxable in FY 2018-19.