Capital gain

1.Date of sale is the date of transfer of ownership which apparently should be the date of execution of sale deed.

2. Sale consideration is the actual amount received.To avoid any suspicion sale below the circle rate is   advisable.

3. The deduction u/s 54 is not admissable since the construction or purchase of land was not incidental to sale.As per this section the amount received from sale of residential property should be used on construction or purchase of new house.Hence, purchase or construction cannot precede the sale.

Thanks Mr Aman Sharma...

But if actual sale consideration is 1200000 and registry is done for Rs. 850000 then sale value for purpose of capital gain will be 1200000 or 850000?? I think it should be 850000..

As per section 54 sale proceed is not required to be invested for new construction.. This requirement is there in section 54F but not in section 54.. I read it in Singhania...

Am i right??

Hi Pratik...

I would like to correct a misstatement made above.

The land purchased buy you is admissable to deduction since it was purchased in previous year i.e. F.Y just preceding the F.Y. year of sale before.

And as far as ur other queries.

1. Yes the amount of sale consideration will be 8,50,000, but the balance should not be trackable otherwise IT department can gain leverage that the deed was undervalued.

2. And Sec 54F covers Long term capital asset other than residential house and other assets covered in sec 54. So your asset falls under sec 54 as the house sold and land purchased are residnetial properties.