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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« News Headlines »
 9 things to take into account when filing your tax return
 Companies (Significant Beneficial Owners) Amendment Rules, 2019
  Tax saving guide for FY 2018-19
 4 lesser known ways to save tax. Filing income tax returns?
 You do not have to pay TDS on FDs under this amount Income tax returns (ITR)
 Income-tax (15th Amendment) Rules, 2019
 How To Calculate Income Tax For Assessment Year 2020-21
 Financial Interim Budget 2019-20
 5 personal tax changes expected in Budget 2019
 Check how much tax would be levied on your income Income Tax returns Invested in debt schemes
 3 taxes no one should have to pay

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 2019 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