Date of transfer for computing capital gain

Date of capital assets shall be the date when sale deed executed. Consideration received before execution of sale deed would be act as advance till the sale deed registered/excuted as consideration received would not transfer the ownership of the given capital asset until the same transfer of ownership documented legally. Therefore, date of transfer in your case would be April and not March provided transaction not falling within Section 45(2) to 45(6) of the Income Tax Act.

Thanks and Regards

Manoj B. Gavali

Date of transfer of capital asset would be the date of registration of transfer deed.

Date of investment made in specified bonds is the date on which payment is made- Hindustan Unilever Ltd v. CIT [2010] 191 Taxman 119 (Bom).

Partly AGREEING AND partly DISAGREEING ALL .

 in normal situation we look DATE OF REGISTRATION = DATE OF TRANSFER. BUT its not allways the same .

see when section is specifically talking about date of tranfer , we have  look into its specific meaning as per income tax act .

In according to section 2(47) transfer ALSO takes place on the date on which possession of immovable property is taken in pursuance of agreement of sale .

REMEMBER PAYMENT OF SALE CONSIDERATION OF PROPERTY PLAY NO PART IN DECIDING THE DATE OF TRANSFER.

CRUX :  Date of transfer will be 

   (a) Date of possession in pursuance of agreement of sale  OR

  (b) Date of registration 

which ever is earlier 

following possibilities arise in your case :

1. possession taken in year 1 -   Date of transfer = Date of possession 

2.possession taken in year 2 before reg - Date of transfer = Date of possession 

3.possession taken in year 2 after Registration  - Date of transfer = date of registration

and again as per Hindustan Unilever Ltd  for claiming execmption u/s 54EC ,only payment for bonds  withing 6 month is relevant ,

things like registration of property, allotment of bonds , issue of allotment certificate etc are irrelevant .

I agree with Ankit regarding date of transfer.

I admit that " agreement to sale " also to be registered but DATE of "registration agrement to sale " has no relevance in deciding the date of transfer .

It is the date of " registration of SALE DEED " which kept relevance for date of transfer .

Income Tax Act 1961 refers Transfer of Property Act for considering date of transfer. As per Section 53A of Transfer of property Act 1882, a transfer can only be taken place on fulfillment of two essential conditions. 1) Execution of agreement and handing over of possession. It is not necessary to satisfy both conditions at the same time and in same year but only after fulfillment of both condition a valid transfer can be taken place.  Hence see to it that when you have satisfied both the condition.

Thankyou sir for your answer. My question was based on the fact that many times, people pass on keys of their house to a prospective buyer on payment of an initial consideration and allow the buyer to make renovations. Subsequently, over a period of 4-6 months(generally), they get a sale deed registered in Court. Now, would the date of registeration be the date of transfer for income tax purposes, like computing Capital Gains or  investing in RECL or NHAI bonds or would the initial date of consideration be considered as date of transfer as cited in CIT v C.F. Thomas (2006) 284 ITR 557 where it was held that execution of sale deed is not necessary for the purpose of charging capital gain because the transfer of right enabling enjoyment of immovable property gives rise to charge of capital gain. 

YES , as soon as the buyer become entitle to enjoy the rights of the property transfer is done and consequently capital gain will be taxable in that previous year does'nt matter that the registration have been made in next previous year .

i agree , once you take the possession transfer is made and capital gain is chargeable.

Date of Execution of Sale Deed (i.e. date mentioned on the transfer/sale deed) or the date on which its registered/registry date?
which shall be considered as date of transfer for capital gain purpose?

in my clients case - date mentioned in transfer deed is 1st august 2021 and its registered/registry date on registration certificate is 1st September 2021

which shall be the date of transfer in this case? in know there wont be any impact on computation but logically i need to understand