Mr. A sold his ancestral property in FY 18-19 (through sale deed); however, the consideration is in the form of Post Dated Cheques (all are dated FY 19-20).
The possession is given to the buyer.
There is a clause in the sale deed which says - "If any of the post dated cheque gets dishonored, this deal will be cancelled."
My question is in which year the tax liability gets attracted - FY 18-19 (wherein no consideration is received) or FY 19-20 (on the ground that if any of the cheques got dishonored, the deal will be cancelled and hence, this transfer will be completed only on the realisation of the last cheque i.e. in FY 19-20)
Thanks in advance!
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Year of Tax Liability in case of Cap Gains
Replies (2)
as my opinion capital gain is arise on the date of transfer which is 18-19 irrespective payment time
Capital Gain shall arise in the year of registration of sale deed.
If you had registered sale deed and paid stamp duty in FY 18-19, then capital gain shall arise in FY 18-19 irrespective of facts that consideration will be received in FY 19-20
If you had registered sale deed and paid stamp duty in FY 18-19, then capital gain shall arise in FY 18-19 irrespective of facts that consideration will be received in FY 19-20
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