Hi, i am an article and need certain clarification on capital Gains.
1. I had sold a property or shares in say 2001-02 and Received a consideration of Rs. 10 cr. Further i receive Rs 1cr in 2011-12 for the same land or shares. Is the Amount that i received in 2011-12 Taxable and how?
2. If i have sold a land for Rs. 10 cr in AY 2011-12 and Rerceived only Rs.8 cr for the same, can the balance Rs.2cr be written off??
Thank you.
1. In case 11 crore was the original consideration then you will be liable to pay tax on (11 crore - Cost) in the year of transfer itself, irrespective of when you receive the consideration.
2. However if 1 crore was received as enchanced compensation later on then you will be liable to pay tax on 1 crores. (Cost of acquisition this year will be taken as Nil, since entire cost of deducted to compute capital gain in the previous year).
3.Im not sure about this case but in my understanding In case you receive only 8 crore for the land even then you will have to pay tax on 10 crore. I dont know whether its possible to get land documents re-registered with revised value
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