Captial gain taxability

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surender sah (Querist)
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02 August 2016 One individual sold a land as on 1st feb, 2016 by receiving a advance amount of Rs 100,000 but the registry of land has to be done in month of November 2016, now the question is how the taxability of this situation is to be taken care in FY 2015-16 and 2016-17??

Please assist in this case, thanks!!!

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CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
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02 August 2016 To be taxable under the head 'capital gains' the capital asset has to be 'transferred' as defined u/s 2(47) of the Income Tax Act, 1961. Transfer includes sale, exchange etc. Also includes handing over of possession as per an agreement pursuant to section 53A of TPA, 1882 (i.e. part performance). If you have not handed over the property, AY2017-18 will be applicable.

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surender sah

surender sah (Querist)
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02 August 2016 Thanks for your prompt reply sir, but one more thing I would like to know is what is the tax treatment of advance received by individual in FY 2015-16.....?? Thanks!!

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
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02 August 2016 You need not treat the amount received, in AY2016-17, unless it was forfeited in FY2015-16. If you find my reply useful, please score me through 'like user'.

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surender sah

surender sah (Querist)
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02 August 2016 Thanks for your reply sir !!!

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