I’m selling an apartment and the buyer has applied for a loan. The bank will date the check on 30th march 2021 and i am planning to get it registered to the buyer on 31st march(hopefully). The bank will provide me a photocopy of the cheque so that i can enter the cheque number on the sale deed, but the problem is that the actual cheque will be given to me in april 2021 after the bank verifies the sale deed. I can deposit the cheque in to my account only in april.
Is this income considered as income earned in this financial year ending with March 31st 2021 or is it considered as income earned in April 2021?
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Income Tax Query
Replies (2)
It will be considered as Income Accrued in FY 2020-21 (i.e. ending on 31st March 2021) as the sale deed will be executed on 31st march 2021, there shall be no issue even if you receive the amount in April 2021.
You will need to pay capital gains tax in the year in which the transfer of the capital asset takes place. now trasfer took place in March u need to pay tax within March.
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