• Year of computation

Dear sir, I received an advance of 5 laCks on 10th march 2016 as part of an agreement of sale. the actual sale will be done on 20th June 2016 and receive the remaining amount which is higher. how the long-term capital gains will be calculated. the amount received as an advance is falling in 2015-2016. the other amount in 2016-2017.
Asked 2 years ago in Capital Gains Tax from Guntur, Andhra Pradesh
No. If sales dint take place in FY 2015-16 and you have not given the possession to the buyer entire amount received in 2015-16 and 2016-17 will be taxable in 2016-17 at the time of sale.

Please feel free to revert in case of any doubts.

Thanks and regards
CA Abhishek Dugar
Abhishek Dugar
CA, Mumbai
2944 Answers
125 Consultations

5.0 on 5.0

Yes you have to pay taxes separately on the interest earned. It will not be part of capital gain.

Please feel free to revert in case of any doubts.

Thanks and regards
CA Abhishek Dugar
Abhishek Dugar
CA, Mumbai
2944 Answers
125 Consultations

5.0 on 5.0

Sir the Long Term Capital Gains will be attracted only in the F.Y.2016-2017 . We need to check the date of registration. 

For the receipt of Advance there will not be any tax. Only upon registration of the Property Tax liability arises
Shyam Sunder Modani
CA, Hyderabad
1408 Answers
95 Consultations

5.0 on 5.0

Dear Sir,

It doesn't matter whether the advance is falling in different year what matters in this is the date of agreement in which the asset is sold that is 20th June in your case.  
So in this case the deduction under section 54 will cannot be taken for deduction and thus would become taxable.

Thanks and Regards 
Shiv Kumar Agarwal
CA, Delhi
258 Answers
58 Consultations

5.0 on 5.0

Dear Sir,

As per the information provided by you, it appears that you have received only the Token amount in order to block your property. I assume possession of the property was not transferred to the buyer.

In such a case Capital Gain will not arise in the FY 2015-16 but will be considered in the FY 2016-17.

Trust this clarifies your query. 

Please feel free to call/ get back in case of any further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Rohit R Sharma
CA, Mumbai
2104 Answers
91 Consultations

5.0 on 5.0

Dear Sir,

Yes the interest income earned on the Sale Proceeds will be liable for income tax but not under the Capital Gains. It will be taxed as Other Sources.

Trust this clarifies your query. 

Please feel free to call/ get back in case of any further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Rohit R Sharma
CA, Mumbai
2104 Answers
91 Consultations

5.0 on 5.0

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