APARTMENT SOLD BUT SALE DEED MADE NEXT YEAR

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CA Rapunzel (Querist)
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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 ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 August 2021 When was the possession of the property handed over?

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CA Rapunzel

CA Rapunzel (Querist)
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27 August 2021 In the year 2020-21 the possession was given.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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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.

CA Rapunzel

CA Rapunzel (Querist)
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27 August 2021 Thank you so much sir.

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VANAJA RANI

VANAJA RANI (Expert)
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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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