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Capital gain on sale of shop

Lila (Job) (490 Points)

15 July 2020

Shop was sold in Mar20 and payment was also received. However, due to lock-down, agreement could not be registered in Mar20 and will be done in 2020-21. Payment received was used in Mar20 to repay loan taken for another property in 2020.

Now the query is, in which year's return should we show the capital gain. In FY 2019-20 or FY 2020-21?

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7 Replies

Lila (Job) (490 Points)
Replied 15 July 2020

Now the query is, in which year's return should we show the capital gain. In FY 2019-20 or FY 2020-21?

Ashwin Kumar (1229 Points)
Replied 15 July 2020

Need More details like date of Receipt of payment, assessable value, market value, agreement value and date of execution of agreement.

Spurto Consultancy Services (Consultant) (1891 Points)
Replied 15 July 2020

If the payment was also received in FY 2019-20 then the Capital Gain should be reported in FY 2019-20.

Ashwin Kumar (1229 Points)
Replied 15 July 2020

Originally posted by : Spurto Consultancy Services
	If the payment was also received in FY 2019-20 then the Capital Gain should be reported in FY 2019-20.

Correct me if i am wrong. If the amount received is not more than 105% of the assessable value then you can take the date of agreement as capital gain date which is in April i.e. 2020-21. However if its more than 105% than its the date of Receipt of payment which is 2019-20.

debora M (BUSINESS DEVELOPMENT MANAGER) (1697 Points)
Replied 16 July 2020

In which year you receive the payment in that year you should show the capital gain.

Lila (Job) (490 Points)
Replied 16 July 2020

Yes 100% of the payment was received in 2019-20, whereas agreement will be entered in Aug20 / Sept 20 (i.e. 2020-21).

Market value and agreement value is same. Can you please tell me what is assesable value?

My query is: In which year should we consider the capital gain...19-20 or 20-21. Should it be in the year of payment or in the year of registration? The reason for delayed registration is lock-down..