Capital gains

A The seller of property has given the property on power to B for 20 lakhs. B has paid the same to A while getting the power regisrered during financial year 2018-19.

B has sold the property for 35 lakhs after making construction and received the amount in his own account during FY2019-20.

My question is whether A has to show his capital gain 10 lakhs calculated after indexing in the IT return for FY2018-19 with selling price as 20lakhs or to show in FY2019-20 IT return with SP as 35lakhs.

Importantly A has received only 20 lakhs in his account.

 

Replies (3)

THERE ARE FEW POINTS TO BE CLARIFIED

CAPITAL GAIN PAYABLE IN THE YEAR MONEY IS RECEIVED IN THE CASE OF JV. GENERALLY CAPITAL GAIN ATTRACTS ON GIVING THE POSSESSION.

1. IS POWER GIVEN ALONG POSSESSION OF VACANT LAND MEANS - THEN A TO PAY CAPITAL GAIN TAX ON RS. 20 LAKHS BASED ON LONG TERM OR SHORT TERM.

2. IF POWER GIVEN FOR CONSTRUCTION AND SALE - THEN TAX ABILITY CAN BE COMMENTED AFTER VERIFYING THE DOCUMENT

Thanks Power given for selling the property along with possession.

ok

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