Capital gain if registration happen later

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CA
528 Points Joined March 2013

Hi all,

I received one property as gift from my parents which they bought for 6L. I sold it in year 2016 and received 42lakhs  in my bank  and didnt receive any cash money. Due to some reasons registered happened in financial year 2024-25 only .  Since now circle rate of that property increased to 90L, buyer deducted 1% TDS because of which  AIS for F.Y. 2024-25 is reflecting 90L  sale price . I didnot disclose sale in year 2016 as registration didnt happen. What should I do now? Please help

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On 24 March 2025 at 13:26 Report
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Master in Accounts & high court Advocate
9025 Points Joined December 2011

A complex situation involving a gifted property, delayed registration, and TDS implications! Immediate Actions: 1. *Consult a Tax Professional*: Engage a chartered accountant or tax consultant to guide you through this process. 2. *Gather Documents*: Collect all relevant documents, including: - *Gift Deed*: The gift deed from your parents. - *Sale Agreement*: The sale agreement from 2016. - *Registration Documents*: The registration documents from 2024-25. - *TDS Certificate*: The TDS certificate showing the 1% deduction. Addressing the TDS and AIS Issue: 1. *TDS on Sale of Property*: The buyer deducted 1% TDS on the sale price of ₹90 lakhs, which is reflected in your AIS for FY 2024-25. 2. *Discrepancy in Sale Price*: The sale price in 2016 was ₹42 lakhs, but the AIS shows ₹90 lakhs due to the TDS deduction. Rectification Process: 1. *File Form 26B*: Submit Form 26B to the Income Tax Department to report the correct sale price and claim the excess TDS deducted. 2. *Submit Revised ITR*: File a revised ITR for FY 2016-17, reporting the correct sale price and claiming the capital gains exemption, if applicable. 3. *Respond to AIS*: Update the AIS with the correct information, reflecting the actual sale price of ₹42 lakhs. Capital Gains Tax Implications: 1. *Capital Gains Exemption*: Since you received the property as a gift, you might be eligible for capital gains exemption under Section 54 or 54F of the Income Tax Act. 2. *Consult a Tax Professional*: Seek professional advice to determine the capital gains tax implications and available exemptions. Important: - *Penalties and Interest*: Be prepared for potential penalties and interest on the delayed reporting of the sale and TDS. - *Tax Professional Guidance*: Rely on your tax professional's guidance to navigate this complex situation and ensure compliance with tax laws.

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On 24 March 2025 at 14:01


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