Capital gain related

in case a if someone make an agreement for sale of flat in the year 2000  for Rs.60 lakh, given the possession of flat  in the year 2005 and finally in the year 2013 executed transfer deed when the value of the flat is Rs.1.34 cr. in this case all payments i.e Rs.60 lakh were received before giving possession of the flat. My question is that when the person is liable for the capital gain in the year 2005 or in the year 2013 when final sale deed was executed  and what will be the sale consideration. Is provision of section 50C is applicable in this case.Is there any case law in this regard.
Asked 6 months ago in Income Tax from Nashik, Maharashtra
As per our view Sir in the present case we need to take the Agreement of sale value entered in 2000 and explain the reason for delay in registration.

Capital Gain in this case arises when the possession is handed over. If you have not done the same then with proper documentation then you need to declare the same in the year 2013 when the actual registration of transfer is made.

50C provisions are applicable but need to prove with the help of Agreement of Sale that actually the transaction was entered at a lesser value.
Shyam Sunder Modani
CA, Hyderabad
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Dear Sir,

Capital Gain shall arise in the year 2013 only as the date of sale will be 2013 and all capital gain working of indexatation and stamp duty rate will be accordingly only.

Sale consideration shall be higher of below :

1) Actual sales Value
2) Jantri Rate Existing as on date of Sale
Vishrut Rajesh Shah
CA, Ahmedabad
239 Answers
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Dear Sir,

At the outset, i would like to mention that different views are possible in this case. According to me, if you have taken the money before possession and handed over the possession in June 2005, it should be taxable in 2005.

 
Abhishek Dugar
CA, Mumbai
766 Answers
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Ok
Abhishek Dugar
CA, Mumbai
766 Answers
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ok will find it out and reply
Shyam Sunder Modani
CA, Hyderabad
955 Answers
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Dear Sir,

In your case since the sale proceeds was received in the year 2000 and even possession was transferred in the year 2005. So Capital Gain shall arise in 2005.

Preparation of Sale Deed in the year 2013 is irrelevant as Sale will be deemed to convey in 2005.

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
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