Sale Proceed of Urban Agri. Land received in Advance in FY 24-25 but Registry is made in next year

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This discussion clarifies when capital gains tax liability arises for a land sale. Although an advance payment was received in FY 2024-25, the final registry occurred in September 2025. Therefore, the capital gains tax will be liable in FY 2025-26, as the transfer transaction was completed in that financial year.

CA. Ankit Vijaywargiya

CA. Ankit Vijaywargiya (Querist)

13 November 2025 One person agreed to sold urban agriculture land in FY 2024-25. 20% Advance amount is received in the same year but registry is done in Sept 2025.

When liability to pay capital gain will arise ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

13 November 2025 When was possession of land handed over?

CA. Ankit Vijaywargiya

CA. Ankit Vijaywargiya (Querist)

14 November 2025 Possession given after final registry

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

14 November 2025 For FY 2024-25 the amount received would be treated as advance.
While the transfer transaction takes place in Sept. 2025; hence the capital gain would be liable in FY 2025-26.

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