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How to report Advance Received in FY 2020-21 against property actually sold in in FY 2021-22

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Vinod Kapoor

Taxpayer

56 Points Posted on 22 July 2021

Sir,I

have sold a house for a Total Consideration of Rs 8,25,000 and have received an advance of Rs 82,500(50,000 cash on 18.02.2021and 32500 through cheque on 20.02.2021)i.e. in F.Y.2020-21.

But the remaining balance payment of Rs 742,500 has been received through Demand Draft at the time of actual registry on 14.07.202121(i.e. in F.Y.2021-22).

While filling ITR-2 for F.Y.2020-21;whether the advance of Rs 82,500 received in F.Y. 2020-21 is to be reported?

If yes, where in ITR-2 ?

Can this Total Amount of 8,25,000 (82500+742500=825000)be reported together in ITR-2 of F.Y. 2021-22 next year ?

Regards,

Vinod Kapoor

Replies (2)

Quick Summary

This discussion clarifies the reporting of advance payments received for property sales across different financial years. It advises that an advance of Rs 82,500 received in FY 2020-21 for a property sold in FY 2021-22 should not be reported in the ITR for FY 2020-21. The full sale consideration of Rs 8,25,000 should be reported in the ITR for FY 2021-22, the year the property was actually registered and sold.