Advance received against sale of property

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This discussion concerns how to report an advance received from a property sale in the financial year 2022-23 for the Assessment Year 2023-24. The individual received an advance of Rs 15,50,000 for selling ancestral property and used Rs 5,00,000 of this as an advance for a new flat purchase. The remaining transactions occurred in April 2023, falling into FY 2023-24. The advice suggests reporting the advance received in AY 2023-24 and carrying forward the relevant TDS.

Gaurav Sinha Roy

Gaurav Sinha Roy (Querist)
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28 May 2023 My mother had received an advance money of around Rs 15,50,000/- from promoter against agreement for sale of her ancestral property by the end of March 2023 and then from it she also had paid a sum of Rs 5,00,000/- as advance against purchase of residential flat. Both the transactions took place in March 2023 i.e. FY 2022-23 & AY 2023-24. While paying Rs 15,50,000/- the promoter deducted TDS u/s 194 IA @ 1% of Rs 15,500. But the actual sale & purchase of flat took place in April 2023 and the remaining consideration received and paid also in April 2023 i.e. FY 2023-24 & AY 2024-25. The remaining consideration received is Rs 30,00,000/- for sale and paid for purchase of the flat is Rs 8,50,000/- in April 2023.
So even though my mother received only Rs 15,50,000/- as advance against sale in FY 20222-23 AY 2023-24 and out of which also paid a sum of Rs 5,00,000/- as advance against purchase of residential flat, how to show them in filing Return of Income for AY 2023-24?
The total value of consideration received is Rs 45,50,000/- for sale and consideration paid in total is Rs 13,50,000/-

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 May 2023 Consider the amount as advance for AY 2023-24 & carry forward the relevant TDS in ITR.

Gaurav Sinha Roy

Gaurav Sinha Roy (Querist)
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28 May 2023 Sir, Thank You for your advice.........
Then in ITR what to be shown for the AY 2023-24 since apart from the above transaction my mother has no other income except interest from savings account and whether will have to pay tax or not??
Since for sb interest can claim deduction u/c VI A u/s 80TTA of Rs 10,000

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 May 2023 As per available information, there will be no tax liability, while TDS deducted over the transaction will be carried forward to next FY, so no refund of it.

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