Capital Gains when there is no gain

Partha Chattopadhyay (Querist) 04 September 2018 This query is : Resolved
Sold an ancestral house at the market price with no loss no gains concept. Whether zeo Capital Gains under ITR2 is to be recorded?

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Guest (Expert) 05 September 2018
Apparently, huge amount of sale proceed would have landed in your account that can raise eyebrows of the IT authorities. So, to avoid any undue harassing exercise by the IT authorities any time in future, formally bringing on record the transaction of such receipt, including cost benefit of the property, is quite necessary. That would be purely in your own interest.

R.Ramachandran (Expert) 05 September 2018
What do you mean by the market price with no loss no gains concept.?
Elaborate.
By the way what is your cost of acquisition and sale consideration?
What is the actual capital gain (positive / negative)

Partha Chattopadhyay (Querist) 09 September 2018
Thank you Mr. Dhingra for your considered views. But where to record such transaction in ITR2? Money landed in my account is not the income since capital gain is zero. ( Though the interest accrued from this amount will be included in income for next year). One way to report is to show in LTCG schedule (i) Sale value as X (ii) indexed cost of acquisition is also as X and (iii) capital gains as X-X=0. Is it all right?

Mr. Ramachandran, on the other hand, asked me " What do you mean by the market price with no loss no gains concept"? Well, my answer is... concept is not on the market price per se. It is the intention of the seller to sell the property at the current market value, neither less, nor more. It means the seller doesn't to have any financial gain or any financial loss either. The seller may be a bit weird and an old fool but his intention is very clear. Hope learner Mr. Ramachandran will now perceive that.

Guest (Expert) 09 September 2018
Filing on the appropriate ITR form relevant to accounting of the capital gains is the answer to your question. You may better take help of some CA to file your ITR on correct form.

However, if you don't want to properly account for your transaction that is outlook and at your own risk and responsibility.