capital gains

142 views 4 replies

Prashanthi Neha

student

36 Points Joined June 2017

My client has received part payment of sale consideration in c.y and has not yet received the remaining balance. What is its effect on calculation of LTCG

Replies (4)

payment will not effect the tax liability i.e, it will not effect the long term or short term
date transfer remains same and from date acquisition to date transfer will be taken into account and not date of payment

Prashanthi Neha

student

36 Points Joined June 2017

Should i show ltcg in current year itr for full payment

Z

Tax Consultation (US and India)

2970 Points Joined September 2011

As per the charging section of capital gains (S.45), capital gain accrues as soon as the property is transferred.

Therefore, income has to be exigible to tax in the period in which the transfer took place, i.e, irrespective of the payment criteria.

"Should i show ltcg in current year itr for full payment

Yes.

45. (1) 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.