Property sale taxation

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partner
53 Points Posted on 19 March 2024

Hello

I am taking advance amount for sale of my property this week and most probably registation will conclude after 2 to 3 months i.e next financial year. So for income tax purpose how should I show the advance amount which i will take in this financial year ? Kindly guide. 

Thanks

 

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On 19 March 2024 at 13:49 Report
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Quick Summary
This discussion clarifies how to handle advance payments received for a property sale for income tax purposes. The consensus is that the advance amount should be recorded as 'Advance received' in the current financial year. However, it will only become taxable in the financial year when the property registration is completed, falling under capital gains or loss calculations.

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Profession
19974 Points Posted on 19 March 2024
Pls post values
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On 19 March 2024 at 16:50
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partner
53 Points Posted on 19 March 2024

Property worth 20 Lakhs

Advance - 5 lakhs 

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On 19 March 2024 at 16:51
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178 Points Posted on 19 March 2024
You can record the amount as Advance received, however it shall be taxable only in the year of sale of property
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On 19 March 2024 at 20:06
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Profession
19974 Points Posted on 20 March 2024
Advance is not taxable , advance paid on the basis of transaction , unless the transaction is accomplished it's not done.
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On 20 March 2024 at 11:12
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CCI STUDENT....
21935 Points Posted on 25 March 2024

It will be considered in the year sale of property and it will be done under capital gains / loss, workings done by taking indexation table. 

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On 25 March 2024 at 14:28
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partner
53 Points Posted on 25 March 2024

Thanks all for your timely advise 🙂

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On 25 March 2024 at 18:47

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