Year of taxing capital gains

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This query is : Resolved

CA Gaurav Ajit Potdar (Querist)

27 March 2015 One of our client have sold his asset for which he is in receipt of Part consideration. ie in FY 14 - 15 & part will be received in FY 15 - 16 when the Agreement for the same would be signed. So in this case what would be the year of taxing capital gains?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

27 March 2015 the year relevant is year of transfer of onwership on record for chargeability of capital gains u/s 48

CA Gaurav Ajit Potdar

CA Gaurav Ajit Potdar (Querist)

27 March 2015 Thanks Tushar, year of transfer of ownership means agreement date right. its in FY 15 - 16. but my query now is what is the tax treatment for the part consideration received in the year 14 - 15. are we required to park the same in Capital gains account. or will it be ok if its in his normal savings account

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

27 March 2015 part considerration shall not be taxed as its an advance in nature of capital for which asset is still yet not transferred and transfer of onwership means in govt records when the name of owner changes from seller to buyer then u need to take such year

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