27 August 2021
A client sold an apartment in 2020-21 and amount was also received in the same year. But the sale deed was made in the year 2021-22 . My question is when should the sale be considered ? year 2020-21 or 2021-22 ?
27 August 2021
When the possession of the property handed over, it amounts to transfer u/s. 2(47) in such cases. Hence the sale would be considered in FY 2020-21.
27 August 2021
As per Transfer of property Act 1882, section 54 Sale is defined “Sale” is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised.
Sale how made.—Such transfer, in the case of tangible immoveable property of the value of one hundred rupees and upwards, or in the case of a reversion or other intangible thing, can be made only by a registered instrument. Hence as per Transfer of property act,1882 Apartment is sold in the year 2021-22.
But as per income tax act 1961, without sale deed registration also treated as transfer.it will be treated as sale in the year 2020-21.
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