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)
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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)
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13 November 2025 When was possession of land handed over?

CA. Ankit Vijaywargiya

CA. Ankit Vijaywargiya (Querist)
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14 November 2025 Possession given after final registry

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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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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