Capital gain on sale of non agriculture land

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 March 2014 Hi.....
My Father has Purchased N.A. Land in the year 2005 & it sold in 2013, Now the payment will received in partially (i.e. It comes in periodically up to 2015, Now I want to know What is the tax treatment for the same. Whether the Tax on sale of the Land (i.e. Capital Gain of Full Amt.) to be payable in this F.Y. or It will be payable in respective year of receipts of the payments. (Note : Only Ragistered Banakhat is made, Dastavej Sale Deed) will be done in 2015. i.e. After receipts of the full payment)

Nikhil Kaushik

Nikhil Kaushik (Expert)
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15 March 2014 it will be taxed in the year in which the asset is transferred....if the transfer took place in FY 2013-14, then the whole of tax shall be payable in AY 2014-15 only.

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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15 March 2014 As per the provisions of Section 2(47)(v) the day on which you handover the possession or accept part payment the Capital Gain is payable in that year. It is immaterial whether you receive the payment or not. Since in your case you have sold the property in the year 2013 it is presumed that you have sold the property between 1.4.2013 to 31.3.2014. Therefore you are also liable to pay advance tax before 15.3.2014 provided that you are not investing the sale proceeds in any bond or residential property

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Querist : Anonymous

Querist : Anonymous (Querist)

15 March 2014 Hi.....
Whether the Income Tax Limit (Income Slab) is consider while calculation of Capital Gain Tax Liability. (i.e. Suppose I don't have any other income than the income from capital gain then the income up to Tax slab is to be deducted or not.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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15 March 2014 Yes slab rate shall apply in this case

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