Advance received against sale of land

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Meera P S (Querist)

30 May 2015 Dear Experts,

Mr Y has entered into an agreement of sale on 2nd March 2015 and received advance of Rs 1 crore. Total sales value is 8 crore

the question is whether this 1crore is liable to tax in the FY 2014-15?? whether there is any capital gain?? if there is any case law dealing such situation ???

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

30 May 2015 Capital gain tax liability will arise when the sale deed is registered. Nothing is taxable for advance received.

Meera P S

Meera P S (Querist)

30 May 2015 But sir, it is seen that advance received is not taxable only when, 1. no agreement is made and 2. possession is not transferred. Here agreement is made before the end of the financial year. then is it taxable?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

30 May 2015 capital gain arised when there is a transfer of capital assets is done and in this case u recieved only advanve hence not taxable as capital till there is transfer of asset.

Meera P S

Meera P S (Querist)

05 June 2015 sir it is the case of an intangible property . in such a case whether sale agreement is sufficient or not?????

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