Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ACCOUNTING STANDARD :: TDS :: empanelment :: VAT RATES :: due date for vat payment :: list of goods taxed at 4% :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: VAT Audit :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: form 3cd
 
 
« News Headlines »
 8 benefits you must know about this tax-saving mutual fund
 10 most important income-tax changes which will apply from April 1
 Delhi: 54 CAs, company secretaries on radar in I-T crackdown against black money
 10 Income Tax Rules That Will Change From April. See Details Herea
 Looking for last-minute tax planning with Section 80C investments? Here's help
 Aadhaar mandatory for filing income tax return
 Will Aadhaar linkage solve India's income tax woes?
 GST roll out from July 1 will make goods cheaper: Jaitley
 Aadhaar To Be Mandatory For Filing Income Tax Return, PAN Application
 7 best tax-saving solutions which can help you save money
  No proposal to replace Income Tax with Banking Cash Transaction Tax

Income tax filing: Capital gains taxable in year of asset transfer
October, 10th 2016

As per Section 45(1) of the Income Tax Act, gain arising from the sale of a capital asset is taxable in the year in which transfer takes place.

I sold a plot of urban land during 2015-16, but did not receive the entire sale consideration as per deferred payment schedule. Do I need to offer entire sale consideration for capital gains tax in FY 2015-16 or in the year of receipt?

As per Section 45(1) of the Income Tax Act, gain arising from the sale of a capital asset is taxable in the year in which transfer takes place. Further, this section has to be read with Section 48 which starts with ascertainment of the full value of consideration received or accruing as a result of the transfer. The word ‘accruing’ in Section 48 makes it clear that entire sale consideration as a result of transfer of the capital asset is taxable in the year in which transfer takes place, irrespective of year of receipt. Therefore, you have to offer entire sale consideration for capital gains tax in FY 2015-16 even though you have not received the full amount in the said year.

I earned long-term capital gains on sale of house and claimed exemption under Section 54EC by investing in REC bonds after seven months when the bonds were available in market. Will I be eligible to claim capital gain tax exemption?

In order to claim exemption under Section 54EC, the long-term capital gains on transfer of asset are required to be invested in the specified bonds within a period of six months after date of such transfer. However, in the instant case, it was practically not possible for you to make the required investment within the specified time limit due to the unavailability of the specified bonds. Considering this, you may be allowed to claim the benefit of Section 54EC based on judicial pronouncements.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions