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rama krishnan 10 April 2019
suppose if you have handed over the possession of property on receipt of token money, then it is part performance of transfer and capital gain will attract. if not capital gain will be charged reckoning year of registration
CA. Kasi Reddy Nallappa Reddy (Chartered Accountant) 10 April 2019
As per section 45 of Income Tax Act'1961, the profits or gains arising out of transfer of capital asset shall be chargeable to capital in the year in which transfer took place.
Section 45 is reproduced here as fallows:
Any profits or gains arising from the transfer of a capital asset effected in the previous year shall, save as otherwise provided in sections 54, 54B, 54D, 54E, 54EA, 54EB, 54F, 54G and 54H, be chargeable to income-tax under the head "Capital gains", and shall be deemed to be the income of the previous year in which the transfer took place.
In the preset scenario the you have just entered in to agreement transfer yet take place, there fore the said capital gain if any shall be liable income tax in FY 2019-20.
However, you can avail stamp duty value for computation of capital gain as on agreement date if the consideration received mode other than cash, if the total consideration is less the stamp duty value.
Let us know if any clarification/information required.
rishi (article) 11 April 2019
As per section 2(47) transfer includes
Any transaction involving allowing POSSESSION of immovable property in part performance of contract will be transfer, so in your case transfer completes when you have received full/part money and possession is transferred.
if possession is handed over before 31 march capital gain shall be levied on whole transaction in the year ending 31 march. Date of actual registration of property will not make any difference.