Whether any sale agreement was made or registered while receiving the advance, or in FY 2016-17?
Whether any TDS was deducted in FY 2016-17?
"Whether this advance received in F.Y.2016-17 is taxable in A.Y.2017-18 IT return??"
No......... Treat is as advance c/f...........
Dear Mr. Chenchu,
Here payment is not important,
Possession is important.
You have pay tax in that FY when you make the possession.
SIR,
IF TDS DEDUCTED ON ADVANCE BUT SALE IS NOT COMPLETED? IS THAT ADVANCE TAXABLE?
Yes, if advance is forfeited......
No, if returned back......
"I have to sell my property and ltcg benefit I will get in end of next month (property registered in June 2016, but allotment agreement was done in 2011 but agreement was not registered)"
Ans.: No. The period of holding the property starts from date of possession. In case you are possessing property from or before May 2016, you are entitled to get long term capital gains benefits.
"but buyer is ready to pay advance now to close and sale agreement of advance payment will be done after the deal but registration of property transfer will take place in july. So should I not take any advance before completing 2 years of registration?"
Ans. Unless there is any condition from the allottee to mandatorily hold property after registration for any specific period, you can sell it any time after 2 years of possessing it. (for long term holding as per IT act.) So, you may not wait till July, 2018.
For properties, generally, possession date has more leverage.
Sir, Do we need to mention advance received for a property while filing returns for that year even though the sale is not complete and the advance amount is invested in another property (apartment)?
Unless agreement for sale is registered, no need to declare any property transaction, but advance will reflect in liability side of BS..
CAclubindia
