Long term capital gain

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2013 If their is any sale & payment is made in instalments before the agrrement can that be considered for cost while computing capital gain.i.e Agrrement in 2012-13 & payments made in the year 2011-12

CA bhargava

CA bhargava (Expert)

23 July 2013 The instalments paid form part of the consideration and becomes coat

CA bhargava

CA bhargava (Expert)

23 July 2013 The instalments paid form part of the consideration and becomes coat

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

23 July 2013 Cost means what you have paid to acquire the asset. So amount paid in installment was actually paid with a consideration of acquiring the asset. So it will form part of the cost of acquisition.

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However, for calculating the holding period of an immovable asset, possession of the property plays an important role. Indexation starts from the date of possession, even if certain amount has been paid as advance.
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