Capital gain chargeability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 March 2016 One of my Client is going to Sell Building For Rs 2000000/- purchased Four Year Back for Rs 900000/- but Payment is to be received in Installment as Rs 500000/- In March 16, Rs 200000/- in June 16 and Rest is in Aug 16, I want to Know When Capital Gain deemed to be Arised for Tax Purposes,

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
Follow

02 March 2016 Please refer section 2(47) to understand meaning of 'transfer'. Transfer includes, the sale, exchange....... allowing possession of any immovable property to be taken or retained in part performance of a contract of the nature referred to in Sec. 53A of TPA, 1882 etc.

Hence, in your case, the date whichever come earlier of below is the date of transfer:
1) on completion of sale (usually date of registration or execution of documents whichever is earlier, if they are on different dates);
2) date of allowing possession of any immovable property to be taken or retained in part performance of a contract of the nature referred to in Sec. 53A of TPA, 1882 etc.

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

02 March 2016 Capital Gain will arise at the instance of SALE. When is your client selling? That date is important.

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
Follow

03 March 2016 The term 'Sale' ordinarily connotes different meanings to different people according to their background. In such a context, it is the duty of a professional to throw some light to the author of the query. The general reply, just to earn some score or amplify sum of 'queries replied' when someone previously replied very specifically, will only distracts the viewers of the 'experts reply' and leads to loss of interest on this forum itself.

In case an expert feels that the reply is conveying a different meaning or is distorting or not according to the prevailing law, he may add some light by quoting the same or clarifying further.

I feel an experts' reply to be revered by the viewers and not be despised.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now