Capital loss/gain from sale of property

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mohan karandikar (Querist)

02 July 2012 Dear sir/madam (expert),

Due to the demise of my mother in 2005, I inherited property ( land + built-up structure ) which she had purchased in 1970. There was no income from the same as it was unoccupied.

The property was sold in FY 2011-12 at a loss, as calculated by taking into account indexation from FY 1981-82.

This was because the area was declared as a non-developement zone by ministry of defense in 2008.

The sale deed was duly adjudicated, and stamp duty reduced as per sale price.

This appears to be a case of capital loss.
However, if I do not wish to claim long term capital loss, can I simply omit the capital gains/loss section in my IT return?
I am filing return as individual having income from business (ITR4).

Thanks & regards,

Mohan K.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

02 July 2012 Even if you do not want to claim the loss you should declare the sale in your return so that the department does not raise any questions later on.

If you do not declare the same, the sale proceeds shall be treated as undisclosed income.

Therefore you should declare the sale.

Message likes : 2 times

mohan karandikar

mohan karandikar (Querist)

03 July 2012 Dear sir,

Thanks for your guidance. ( I have also used the thanks button).

I believe the appropriate section to be used would be schedule CG section B3. Kindly correct me if this is wrong.
Also, I will be grateful for guidance for filling section B5 and section D - LTCG w. prov. or LTCD w/o prov.

Thanks & regards,

Mohan K.

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