Alok Jain (12 Points)
02 October 2018I purchased a property 2 yrs back for 10 lks , but due to some disputes in property I gave back that property and deal was registration was cancelled in registrar office and got my paid money thru mediators account in my account , is it there is any need of showing this transaction in ITR and if where to show and how to show , there is no capital gain or loss here
A B Kundu
(Professional)
(1422 Points)
Replied 02 October 2018
When you purchased the property, whether the same was registered? If yes, then it shall be treated as Purchase and after two years when you are returning back the same it would be treated as Sale, hence capital gain would arise. If your holding period is more than 24 months then it would be LongTerm CG and hence indexation provision would apply. Further, it's recommended to disclose the Gain/Loss from the property in your return, fill ITR-2 provided all other conditions are met.
CA KALPESH LAKHANI
(PRACTICE)
(322 Points)
Replied 28 February 2019
Yes, you has report the transaction to tax department, as you purchased the property and also execute the sale deed of the same property to the same person, receipts and payments transaction, stamp duty charges and legal fees all this expenses incurred, you has to show in to your books of accounts and have to paid Capital Gain Tax accordingly.
CA Ankit Agarwal
(CA, CS)
(688 Points)
Replied 05 March 2019
In context of Income tax Act, the transaction shall be treated as sale of property.
Even if there is no capital gain/loss, you will have to calculate the notional gain/loss and disclose the same accordingly.
CAclubindia
