Advance received for sale of property

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Priyanka Agarwal (Querist)
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23 December 2015 Facts of the Case: A "Non-cancellable Registered Agreement to Sale" has been executed between transferor and transferee and the transferee has paid half of the agreed consideration, rest half to be paid on getting possession and getting a Registered Sale Deed.

Clarification is required as to what should be taken as the "Effective date of Transfer" in order to Compute Capital Gain?

Thanks in Advance,
Priyanka

A.Soundararajan

A.Soundararajan (Expert)
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23 December 2015 In the facts of the case only advance is received under a registered agreement. Revocable or irrevocable is not relevant. The possession Will be handed over after getting the balance consideration and upon registration. Hence the effective date Will be date of registration of the property for calculation of capital gain

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Priyanka Agarwal

Priyanka Agarwal (Querist)
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24 December 2015 Thanks for your reply.

A correction, the sale deed is will not be registered. It will just be on a 100 rupee stamp paper. The earlier agreement to sale which has been executed has been registered and stamp duty has been paid on the same. Does this change the implication of tax?

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