Capital gain - sale of plot
Dipen Gandhi
(Querist) 29 August 2013
This query is : Resolved
Good Evening,
I, aged 60 years, have received entire sale consideration upon sale of my plot in January 2013.
Also, the buyer has been handed over possession, who has commenced construction of Bunglow on the said plot.
However, no legal document (like sale deed or agreement to sale) are yet to be executed.
Can such possession and receiving money can be treated as sale in FY 2012-13, under income tax act for capital gain purpose ?
OR
Will it be liable to capital gain when sale deed will be executed and registered in FY 2013-14 ?
For capital gain tax saving reinvestment what is the period available with me and from which date such period will commence ?
Regards
B.Chakrapani Warrier
(Expert) 29 August 2013
Handing over of the possession and receiving substantial amount of the consideration will be treated as sale for the purpose of computing capital gains. Therefore, you have to compute captial gains in FY 2012-13.
Limitation period Starts from .... January, 2013.
If not reivested before filing the due date of filing the return for the FY 2012-13, it has to be deposited in an account called as Capital Gains Account Scheme,1988.
Rajendra K Goyal
(Expert) 30 August 2013
Agree with the expert B.Chakrapani ji. Nothing more to add.
Dipen Gandhi
(Querist) 31 August 2013
Thank you very much Sir for clear guidance on sale of plot.
The only query left is that i had purchased this plot before 2/3 years but execution of purchase deed has been delayed and the same had taken place and registered on 27.2.2013.
Pl. advise as to which document/date i should consider as purchase of this plot for Capital Gain purpose and to arrive at year of indexation.
Regards.
