wether the date of registeration of the date of recieving the full consideration and handing over possesion is the date for calculation of the capital gain

Dear Sir

I have sold a residential premise with an agreement to sale, dated 25th mar 2008 which is registered and stam duty paid by the purchaser, where in have recd only 3lkahs of the condsideration in mar 2008 , and the balance from SBI loan account of the purchaser in april 2008 as per terms mentioned in the aggrement. The entire set of original papers including share certificate, original noc from society and prior older aggrement copies were handed over to the purchaser with possesion of the flat in april 2008 after recieving total consideration as per terms mentioned in the aggrement.

The sale proceeds were kept in a fixed deposit not a capital gain account even after the filing of my next return in July 2008. I purchased a premise in Dec 2008 taking into account the capital gain accrued after indexing and purchased the new premise within 9 months.

Now income tax has raised a scrutiny on me and demands tax to be paid on the entire capital gain, as they say the transaction has been completed in mar 2008 and not april 2008 and i should have invested the capital in a capital gain account and not an regular FD accunt.

MY QUESTION IS that how can this be considered when i have not recd full consideration, nor have i handed over the original share certificates, and other papers, nor given possesion of the said premises till april 2008 which is also acknowdelege by SBI home loan department as per a letter dated april 2008 and all the drafts are dated in april 2008.

Please advice wether in my case the date of registeration, or date of recieving the full consideration and handing over possesion is the date for calculation of the capital gain.

asked Jun 05 '11 at 05:52 by carlb88 1111


Income tax department is correct in their actions. Date of transfer will be considered as Mar 2008 as registration was done. Moreover the gain amount must be kept in capital account scheme and not in a FD or bank account.

As per income tax law, date of transfer is considered for all calculations.

answered Jun 08 '11 at 08:24 by pankaj 5.2k320

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Asked: Jun 05 '11 at 05:52

Seen: 1,477 times

Last updated: Jun 08 '11 at 08:28