Transffer u/s 2(47)(v) of income tax act,

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2015 I have an query
In case where agreement has made for sale of immovable property and part payment of sale consideration has received on agreement date which is 25.3.2014

Now Possession, registry and payment all the event has taken place in next year i.e on 25.5.2014
Now my query is when the immovable property shall be consider as transfer as per Income tax act 1961,
and what circle rate shall apply for calculating capital gain

Please clear my doubt as possible clearity

Thanks and regards
Greeting of the day

Querist : Anonymous

Querist : Anonymous (Querist)

06 April 2015 Dear Users Please response...

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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02 August 2025 Great question! Let's clarify the concept of **"transfer" under Section 2(47)(v) of the Income Tax Act, 1961** in the context of immovable property sale.

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### When is the property considered "Transferred" as per Income Tax Act?

* **Section 2(47)(v)** defines transfer as including the **sale of immovable property**.
* **For Capital Gains Tax purpose, the date of transfer is the date on which the agreement of sale is executed**, **if possession is also handed over on that date** or **the entire sale consideration is received on that date**.

In your case:

* Agreement date: **25.3.2014**
* Part payment received on agreement date
* Possession and registry done later on **25.5.2014**

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### What is the transfer date here?

* Since **possession and registry happened after the agreement date**, and **only part payment received on agreement date**, the transfer date will likely be the **date of possession/registry (25.5.2014)**, when the buyer actually takes control.
* **If possession had been handed over on agreement date and full consideration received, then that date (25.3.2014) would be transfer date.**

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### What circle rate applies for Capital Gains calculation?

* As per Income Tax rules, **circle rate applicable is the one on the date of transfer**.
* Since transfer date is **25.5.2014**, the circle rate prevailing on that date (possession/registry) applies.
* The **stamp duty value or circle rate on transfer date is used as the fair market value (FMV)** for capital gains calculation, if it exceeds the sale consideration.

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### Summary Table

| Event | Date | Impact |
| -------------------------- | ------------------ | -------------------------------------- |
| Agreement Date | 25.3.2014 | Sale agreement executed |
| Part Payment | 25.3.2014 | Partial consideration received |
| Possession & Registry | 25.5.2014 | Buyer takes possession and legal title |
| Transfer Date (Income Tax) | 25.5.2014 (likely) | Date of actual transfer of property |
| Circle Rate Applicable | 25.5.2014 | Used for capital gains FMV calculation |

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If you want, I can also help you with **capital gains calculation examples** or **how to report this in your tax return**. Would that be useful?

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